Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 06, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-31343 | ||
Entity Registrant Name | ASSOCIATED BANC-CORP | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1098068 | ||
Entity Address, Address Line One | 433 Main Street | ||
Entity Address, City or Town | Green Bay, | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 54301 | ||
City Area Code | 920 | ||
Local Phone Number | 491-7500 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,375,478,000 | ||
Entity Common Stock, Shares Outstanding | 156,455,138 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for the Annual Meeting of Shareholders to held on April 28, 2020 are incorporated by reference in this Form 10-K into Part III. | ||
Entity Central Index Key | 0000007789 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | ASB | ||
Security Exchange Name | NYSE | ||
Series C Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shrs, each representing 1/40th intrst in a shr of 6.125% Non-Cum. Perp Pref Stock, Srs C | ||
Trading Symbol | ASB PrC | ||
Security Exchange Name | NYSE | ||
Series D Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shrs, each representing 1/40th intrst in a shr of 5.375% Non-Cum. Perp Pref Stock, Srs D | ||
Trading Symbol | ASB PrD | ||
Security Exchange Name | NYSE | ||
Series E Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shrs, each representing 1/40th intrst in a shr of 5.875% Non-Cum. Perp Pref Stock, Srs E | ||
Trading Symbol | ASB PrE | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and due from banks | $ 373,380 | $ 507,187 | |
Interest-bearing deposits in other financial institutions | 207,624 | 221,226 | |
Federal funds sold and securities purchased under agreements to resell | 7,740 | 148,285 | |
Investment securities held to maturity, at amortized cost | 2,205,083 | 2,740,511 | |
Investment securities available for sale, at fair value | 3,262,586 | 3,946,941 | |
Equity securities | 15,090 | 1,568 | |
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 227,347 | 250,534 | |
Residential loans held for sale | 136,280 | 64,321 | |
Commercial loans held for sale | 15,000 | 14,943 | |
Loans | 22,821,440 | 22,940,429 | |
Allowance for loan losses | (201,371) | (238,023) | |
Loans, net | 22,620,068 | 22,702,406 | |
Bank and corporate owned life insurance | 671,948 | 663,203 | |
Tax credit and other investments | 279,969 | 161,181 | |
Premises and equipment, net | 435,284 | 363,225 | |
Goodwill | 1,176,230 | 1,169,023 | |
Mortgage servicing rights, net | 67,306 | 68,193 | |
Other intangible assets, net | 88,301 | 75,836 | |
Other assets(a) | [1] | 597,242 | 516,538 |
Total assets | 32,386,478 | 33,615,122 | |
Liabilities and stockholders' equity | |||
Noninterest-bearing demand deposits | 5,450,709 | 5,698,530 | |
Interest-bearing deposits | 18,328,355 | 19,198,863 | |
Total deposits | 23,779,064 | 24,897,393 | |
Federal funds purchased and securities sold under agreements to repurchase | 433,097 | 111,651 | |
Commercial paper | 32,016 | 45,423 | |
FHLB advances | 3,180,967 | 3,574,371 | |
Other long-term funding | 549,343 | 795,611 | |
Accrued expenses and other liabilities(a) | 489,868 | 409,787 | |
Total liabilities | 28,464,355 | 29,834,235 | |
Stockholders’ equity | |||
Preferred equity | 256,716 | 256,716 | |
Common stock | 1,752 | 1,752 | |
Surplus | 1,716,431 | 1,712,615 | |
Retained earnings | 2,380,867 | 2,181,414 | |
Accumulated other comprehensive income (loss) | (33,183) | (124,972) | |
Treasury stock, at cost | (400,460) | (246,638) | |
Total common equity | 3,665,407 | 3,524,171 | |
Total stockholders’ equity | 3,922,124 | 3,780,888 | |
Total liabilities and stockholders’ equity | $ 32,386,478 | $ 33,615,122 | |
Preferred shares authorized (par value $1.00 per share) | 750,000 | 750,000 | |
Preferred shares issued and outstanding | 264,458 | 264,458 | |
Common shares authorized (par value $0.01 per share) | 250,000,000 | 250,000,000 | |
Common shares issued | 175,216,409 | 175,216,409 | |
Common shares outstanding | 157,171,247 | 164,440,471 | |
[1] | (a) During the third quarter of 2019, the Corporation made a change in accounting policy to offset derivative assets and liabilities and cash collateral with the same counterparty where it has a legally enforceable master netting agreement in place. The change had no impact on either earnings or equity. The Corporation believes that this change is a preferable method of accounting as it provides a better reflection of the assets and liabilities on the face of the consolidated balance sheets. Adoption of this change was voluntary and has been adopted retrospectively with all prior periods presented herein revised. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders’ equity | ||
Preferred shares, par value | $ 1 | $ 1 |
Common shares, par value | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Interest income | ||||
Interest and fees on loans | $ 998,099 | $ 976,990 | $ 749,000 | |
Interest and dividends on investment securities | ||||
Taxable | 100,304 | 119,741 | 96,909 | |
Tax-exempt | 57,565 | 44,782 | 32,977 | |
Other interest | 16,643 | 12,623 | 7,719 | |
Total interest income | 1,172,610 | 1,154,137 | 886,605 | |
Interest expense | ||||
Interest on deposits | 237,286 | 176,118 | 94,025 | |
Interest on federal funds purchased and securities sold under agreements to repurchase | 1,579 | 2,006 | 2,527 | |
Interest on other short-term funding | 149 | 186 | 293 | |
Interest on FHLB advances | 69,816 | 73,668 | 30,364 | |
Interest on long-term funding | 28,106 | 22,579 | 18,176 | |
Total interest expense | 336,936 | 274,557 | 145,385 | |
Net interest income | 835,674 | 879,580 | 741,220 | |
Provision for credit losses | 16,000 | 0 | 26,000 | |
Net interest income after provision for credit losses | 819,674 | 879,580 | 715,220 | |
Noninterest income | ||||
Noninterest Income In Scope of Topic 606 | 288,247 | 290,084 | 262,175 | |
Capital markets, net | 19,862 | 20,120 | 19,642 | |
Mortgage banking, net | 31,878 | 19,911 | 19,360 | |
Bank and corporate owned life insurance | 14,845 | 13,951 | 16,250 | |
Asset gains (losses), net(b) | [1] | 2,713 | (1,103) | (1,244) |
Investment securities gains (losses), net | 5,957 | (1,985) | 434 | |
Other | 11,165 | 9,051 | 9,523 | |
Total noninterest income | 380,824 | 355,568 | 332,680 | |
Noninterest expense | ||||
Personnel | 487,063 | 482,676 | 428,976 | |
Technology | 82,429 | 72,674 | 63,004 | |
Occupancy | 62,399 | 59,121 | 53,842 | |
Business development and advertising | 29,600 | 30,923 | 28,946 | |
Equipment | 23,550 | 23,243 | 21,201 | |
Legal and professional | 19,901 | 23,061 | 22,509 | |
Loan and foreclosure costs | 8,861 | 7,410 | 7,293 | |
FDIC assessment | 16,250 | 30,000 | 31,300 | |
Other intangible amortization | 9,948 | 8,159 | 1,959 | |
Other | 46,666 | 55,530 | 50,102 | |
Total noninterest expense | 793,988 | 821,799 | 709,133 | |
Income before income taxes | 406,509 | 413,349 | 338,767 | |
Income tax expense | 79,720 | 79,786 | 109,503 | |
Net income | 326,790 | 333,562 | 229,264 | |
Preferred stock dividends | 15,202 | 10,784 | 9,347 | |
Net income available to common equity | $ 311,587 | $ 322,779 | $ 219,917 | |
Earnings per common share | ||||
Basic | $ 1.93 | $ 1.92 | $ 1.45 | |
Diluted | $ 1.91 | $ 1.89 | $ 1.42 | |
Average common shares outstanding | ||||
Basic | 160,534 | 167,345 | 150,877 | |
Diluted | 161,932 | 169,732 | 153,647 | |
Insurance commissions and fees | ||||
Noninterest income | ||||
Noninterest Income In Scope of Topic 606 | $ 89,104 | $ 89,511 | $ 81,474 | |
Wealth management fees(a) | ||||
Noninterest income | ||||
Noninterest Income In Scope of Topic 606 | [2] | 83,467 | 82,562 | 70,126 |
Service charges on deposit account fees | ||||
Noninterest income | ||||
Noninterest Income In Scope of Topic 606 | 63,135 | 66,075 | 64,427 | |
Card-based fees | ||||
Noninterest income | ||||
Noninterest Income In Scope of Topic 606 | 39,912 | 39,810 | 34,997 | |
Service charges on deposit account fees | 39,755 | 39,656 | 34,834 | |
Other fee-based revenue | ||||
Noninterest income | ||||
Noninterest Income In Scope of Topic 606 | 12,629 | 12,126 | 11,151 | |
Service charges on deposit account fees | 18,942 | 17,818 | 17,854 | |
Operating Segments [Member] | Risk Management and Shared Serivies [Member] | ||||
Noninterest expense | ||||
Acquisition related costs(c) | [3] | $ 7,320 | 29,002 | $ 0 |
Huntington National Bank | ||||
Related acquisition asset losses net of asset gains | less than $1 million | |||
Bank Mutual [Member] | ||||
Gain (Loss) on Disposition of Assets for Financial Service Operations | $ 2,000 | |||
[1] | (b) The year ended December 31, 2019 includes less than $1 million of Huntington related asset losses; the year ended December 31, 2018 includes approximately $2 million of Bank Mutual acquisition related asset losses net of asset gains. | |||
[2] | (a) Includes trust, asset management, brokerage, and annuity fees. | |||
[3] | (c) Includes Bank Mutual, Huntington branch, and First Staunton acquisition related costs only. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 326,790 | $ 333,562 | $ 229,264 | |
Investment securities available for sale | ||||
Net unrealized gains (losses) | 111,592 | (39,891) | (12,302) | |
Net unrealized gain (loss) on available for sale securities transferred to held to maturity securities | 0 | 0 | (14,738) | |
Amortization of net unrealized (gains) losses on available for sale securities transferred to held to maturity securities | 895 | (572) | (2,665) | |
Reclassification adjustment for net losses (gains) realized in net income(a) | [1] | (5,957) | 1,985 | 0 |
Reclassification from OCI due to change in accounting principle | 0 | (84) | 0 | |
Reclassification of certain tax effects from OCI | 0 | (8,419) | 0 | |
Income tax (expense) benefit | (26,898) | 9,791 | 11,331 | |
Other comprehensive income (loss) on investment securities available for sale | 79,631 | (37,189) | (18,374) | |
Defined benefit pension and postretirement obligations | ||||
Amortization of prior service cost | (148) | (148) | (148) | |
Net actuarial (loss) gain | 16,296 | (28,612) | 14,273 | |
Amortization of actuarial loss (gain) | 476 | 2,203 | 2,282 | |
Reclassification of certain tax effects from OCI | 0 | (5,235) | 0 | |
Income tax (expense) benefit | (4,465) | 6,767 | (6,112) | |
Other comprehensive income (loss) on pension and postretirement obligations | 12,158 | (25,025) | 10,295 | |
Total other comprehensive income (loss) | 91,789 | (62,214) | (8,079) | |
Comprehensive income | $ 418,579 | $ 271,348 | $ 221,185 | |
[1] | (a) Includes only available for sale securities. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Equity | Common Stock [Member] | Surplus | Retained Earnings | Retained EarningsSeries C Preferred Stock | Retained EarningsSeries D Preferred Stock | Retained EarningsSeries E Preferred Stock | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |
Beginning balance at Dec. 31, 2016 | $ 3,091,312 | $ 159,929 | $ 1,630 | $ 1,364,066 | $ 1,791,196 | $ (54,679) | $ (170,830) | ||||
Preferred stock shares outstanding, beginning balance (in shares) at Dec. 31, 2016 | 165,000 | ||||||||||
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2016 | 163,030,000 | ||||||||||
Comprehensive income: | |||||||||||
Net income | 229,264 | 229,264 | |||||||||
Other comprehensive loss | (8,079) | (8,079) | |||||||||
Comprehensive income | 221,185 | ||||||||||
Common stock issued: | |||||||||||
Stock-based compensation plans, net | 27,619 | (17,737) | 0 | 45,356 | |||||||
Common Stock Issued During Period, Shares, Acquisitions | 291,000 | ||||||||||
Issuance of treasury stock for acquisition | 7,151 | $ 3 | 7,148 | 0 | |||||||
Purchase of common stock returned to authorized but unissued, shares | (1,569,000) | ||||||||||
Purchase of common stock returned to authorized but unissued, amount | (37,031) | $ (15) | (37,016) | ||||||||
Purchase of treasury stock | (9,290) | (9,290) | |||||||||
Cash dividends | |||||||||||
Common stock dividends | (76,417) | (76,417) | |||||||||
Preferred stock dividends | [1] | (9,347) | (9,347) | ||||||||
Stock-based compensation expense, net | 21,227 | 21,227 | |||||||||
Tax impact of stock-based compensation | 1,034 | 1,034 | |||||||||
Ending balance at Dec. 31, 2017 | 3,237,443 | $ 159,929 | $ 1,618 | 1,338,722 | 1,934,696 | (62,758) | (134,764) | ||||
Preferred stock shares outstanding, ending balance (in shares) at Dec. 31, 2017 | 165,000 | ||||||||||
Common stock shares outstanding, ending balance (in shares) at Dec. 31, 2017 | 161,752,000 | ||||||||||
Cash dividends | |||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 1.53125 | $ 1.34375 | |||||||||
Net income | 333,562 | 333,562 | |||||||||
Other comprehensive loss | (62,214) | (62,214) | |||||||||
Other Comprehensive Income, Other, Net of Tax | (48,476) | (48,476) | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (13,738) | (13,738) | |||||||||
Comprehensive income | 271,348 | ||||||||||
Stock-based compensation plans, net | 18,408 | (7,116) | 15,096 | 10,428 | |||||||
Common Stock Issued During Period, Shares, Acquisitions | 13,705,000 | ||||||||||
Issuance of treasury stock for acquisition | 488,408 | $ 137 | 396,975 | 91,296 | |||||||
Purchase of common stock returned to authorized but unissued, shares | (1,357,000) | ||||||||||
Purchase of common stock returned to authorized but unissued, amount | (33,075) | $ (14) | (33,061) | ||||||||
Purchase of treasury stock | (213,598) | (213,598) | |||||||||
Common stock dividends | (105,519) | (105,519) | |||||||||
Preferred stock dividends | [2] | (10,784) | (10,784) | ||||||||
Issuance of preferred stock | 100,000 | ||||||||||
Issuance of preferred stock | 97,315 | $ 97,315 | |||||||||
Purchase of Preferred Stock Repurchased During Period, Shares | (1,000) | ||||||||||
Purchase of preferred stock | (537) | $ (528) | (8) | ||||||||
Common Stock Shares from Warrant Exercises | 1,116,000 | ||||||||||
Proceeds from Common Stock Warrant Exercises | (1) | $ 11 | (12) | ||||||||
Stock-based compensation expense, net | 17,107 | 17,107 | |||||||||
Tax Act Reclassification | 13,654 | 13,654 | |||||||||
Change in Accounting Principal | 84 | 84 | |||||||||
Other | 632 | 632 | |||||||||
Ending balance at Dec. 31, 2018 | $ 3,780,888 | $ 256,716 | $ 1,752 | 1,712,615 | 2,181,414 | (124,972) | (246,638) | ||||
Preferred stock shares outstanding, ending balance (in shares) at Dec. 31, 2018 | 264,000 | ||||||||||
Common stock shares outstanding, ending balance (in shares) at Dec. 31, 2018 | 164,440,471 | 175,216,000 | |||||||||
Cash dividends | |||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | 1.53125 | 1.34375 | $ 0.322309 | ||||||||
Net income | $ 326,790 | 326,790 | |||||||||
Other comprehensive loss | 91,789 | 91,789 | |||||||||
Comprehensive income | 418,579 | ||||||||||
Stock-based compensation plans, net | 11,216 | (21,038) | 0 | 32,254 | |||||||
Purchase of treasury stock | (186,076) | (186,076) | |||||||||
Common stock dividends | (111,804) | (111,804) | |||||||||
Preferred stock dividends | [3] | (15,202) | (15,202) | ||||||||
Stock-based compensation expense, net | 24,854 | 24,854 | |||||||||
Other | (331) | (331) | |||||||||
Ending balance at Dec. 31, 2019 | $ 3,922,124 | $ 256,716 | $ 1,752 | $ 1,716,431 | $ 2,380,867 | $ (33,183) | $ (400,460) | ||||
Preferred stock shares outstanding, ending balance (in shares) at Dec. 31, 2019 | 264,000 | ||||||||||
Common stock shares outstanding, ending balance (in shares) at Dec. 31, 2019 | 157,171,247 | 175,216,000 | |||||||||
Cash dividends | |||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 1.53125 | $ 1.34375 | $ 1.46875 | ||||||||
[1] | (a) Series C, $1.53125 per share; and Series D, $1.34375 per share. | ||||||||||
[2] | (b) Series C, $1.53125 per share; Series D, $1.34375 per share; and Series E, $0.322309 per share. | ||||||||||
[3] | (c) Series C, $1.53125 per share; Series D, $1.34375 per share; and Series E, $1.46875 per share. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock [Member] | |||
Cash dividends | |||
Common Stock, per share | $ 0.69 | $ 0.62 | $ 0.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash Flows from Operating Activities | ||||
Net income | $ 326,790 | $ 333,562 | $ 229,264 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for credit losses | 16,000 | 0 | 26,000 | |
Depreciation and amortization | 58,149 | 48,253 | 46,967 | |
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | 63 | (545) | 175 | |
Amortization of mortgage servicing rights | 12,432 | 9,594 | 10,084 | |
Amortization of Intangible Assets | 9,948 | 8,159 | 1,959 | |
Amortization and accretion on earning assets, funding, and other, net | 23,573 | 11,624 | 37,476 | |
Net amortization of tax credit investments | 20,062 | 19,425 | 19,834 | |
Deferred income taxes | 13,833 | 46,947 | 21,402 | |
Losses (gains) on sales of investment securities, net | (5,957) | 1,985 | (434) | |
Asset (gains) losses, net | [1] | (2,713) | 1,103 | 1,244 |
(Gain) loss on mortgage banking activities, net | (20,120) | (22,497) | (3,516) | |
Mortgage loans originated for sale | (1,090,792) | (1,092,318) | (715,357) | |
Proceeds from sales of mortgage loans held for sale | 1,317,077 | 1,131,652 | 819,950 | |
Pension contributions | 0 | (41,877) | (6,242) | |
(Increase) decrease in interest receivable | 7,595 | (7,417) | (9,476) | |
Increase (decrease) in interest payable | 2,495 | 10,407 | 6,535 | |
Increase (decrease) in accrued expenses | 723 | 30,924 | 3,520 | |
Increase (decrease) in derivative asset | (102,966) | 40,950 | (13,076) | |
Net change in other assets and other liabilities | (11,930) | (33,363) | (17,941) | |
Net cash provided by operating activities | 574,260 | 496,567 | 458,368 | |
Cash Flows from Investing Activities | ||||
Net increase in loans | (137,990) | (326,464) | (861,934) | |
Purchases of | ||||
Available for sale securities | (460,124) | (737,580) | (1,137,191) | |
Held to maturity securities | (423,682) | (682,622) | (234,379) | |
Federal Home Loan Bank and Federal Reserve Bank stocks | (246,836) | (347,323) | (262,986) | |
Premises, equipment, and software, net of disposals | (67,459) | (65,854) | (47,369) | |
Proceeds from | ||||
Sales of available for sale securities | 1,367,476 | 601,130 | 18,467 | |
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks | 270,023 | 282,145 | 237,656 | |
Prepayments, calls, and maturities of available for sale investment securities | 561,659 | 633,859 | 713,486 | |
Prepayments, calls, and maturities of held to maturity investment securities | 260,510 | 217,836 | 210,753 | |
Sales, prepayments, calls and maturities of other assets | 10,250 | 41,856 | 20,070 | |
Net change in tax credit and alternative investments | (67,632) | (57,327) | (53,770) | |
Net cash (paid) received in acquisition | 551,250 | 59,472 | 339 | |
Net cash provided by (used in) investing activities | 1,617,446 | (380,872) | (1,396,858) | |
Cash Flows from Financing Activities | ||||
Net increase (decrease) in deposits | (1,842,748) | 270,481 | 897,514 | |
Net increase (decrease) in short-term funding | 308,039 | (581,371) | (217,753) | |
Net increase (decrease) in short-term FHLB advances | (380,000) | 616,000 | (198,000) | |
Repayment of long-term FHLB advances | (764,657) | (2,150,016) | (115,020) | |
Proceeds from long-term FHLB advances | 751,573 | 1,837,680 | 750,000 | |
Redemption of Corporation's senior notes | (250,000) | 0 | 0 | |
Finance Lease, Principal Payments | (1) | 0 | 0 | |
Proceeds from issuance of long-term funding | 0 | 300,000 | 0 | |
Proceeds from issuance of preferred shares | 0 | 97,315 | 0 | |
Proceeds from issuance of common stock for stock-based compensation plans | 11,216 | 18,408 | 27,619 | |
Common stock warrants exercised | 0 | (1) | 0 | |
Purchase of preferred shares | 0 | (537) | 0 | |
Purchase of common stock returned to authorized but unissued | 0 | (33,075) | (37,031) | |
Purchase of treasury stock | (186,076) | (213,598) | (9,290) | |
Cash dividends on common stock | (111,804) | (105,519) | (76,417) | |
Cash dividends on preferred stock | (15,202) | (10,784) | (9,347) | |
Net cash provided by (used in) financing activities | (2,479,660) | 44,983 | 1,012,275 | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (287,954) | 160,678 | 73,785 | |
Cash, cash equivalents, and restricted cash at beginning of period | 876,698 | 716,018 | 642,233 | |
Cash, cash equivalents, and restricted cash at end of period | 588,744 | 876,698 | 716,018 | |
Supplemental disclosures of cash flow information | ||||
Cash paid for interest | 332,919 | 261,724 | 138,174 | |
Cash paid for income and franchise taxes | 41,131 | 18,335 | 81,450 | |
Loans and bank premises transferred to other real estate owned | 10,513 | 26,517 | 11,505 | |
Capitalized mortgage servicing rights | 11,606 | 10,722 | 7,167 | |
Loans transferred into held for sale from portfolio, net | 313,570 | 33,010 | 71,954 | |
Transfer of held to maturity securities to available for sale securities (adoption of ASU 2019-04) | 692,414 | 0 | 0 | |
Unsettled trades to purchase securities | 0 | 883 | 0 | |
Acquisition | ||||
Fair value of assets acquired, including cash and cash equivalents | 695,848 | 2,567,488 | 647 | |
Fair value ascribed to goodwill and intangible assets | 29,837 | 261,243 | 6,450 | |
Fair value of liabilities assumed | 725,764 | 2,340,323 | 54 | |
Common stock issued in acquisition | 488,408 | 7,151 | ||
Equity Interests Reversed | (79) | |||
Cash and cash equivalents | 400,232 | 782,784 | 643,042 | |
Restricted Cash | $ 188,512 | $ 93,914 | $ 72,976 | |
[1] | (b) The year ended December 31, 2019 includes less than $1 million of Huntington related asset losses; the year ended December 31, 2018 includes approximately $2 million of Bank Mutual acquisition related asset losses net of asset gains. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accounting and reporting policies of the Corporation conform to U.S. GAAP and to general practice within the financial services industry. The following is a description of the more significant of those policies. Business Associated Banc-Corp is a bank holding company headquartered in Wisconsin. The Corporation provides a full range of banking and related financial services to consumer and commercial customers through its network of bank and nonbank subsidiaries. The Corporation is subject to competition from other financial and non-financial institutions that offer similar or competing products and services. The Corporation is regulated by federal and state agencies and is subject to periodic examinations by those agencies. Basis of Financial Statement Presentation The consolidated financial statements include the accounts of the Parent Company and its subsidiaries. Investments in unconsolidated entities (none of which are considered to be variable interest entities in which the Corporation is the primary beneficiary) are accounted for using the cost method of accounting when the Corporation has determined that the cost method is appropriate. Investments not meeting the criteria for cost method accounting are accounted for using the equity method of accounting. Investments in unconsolidated entities are included in tax credit and other investments on the consolidated balance sheets, and the Corporation’s share of income or loss is recorded in other noninterest income, while distributions in excess of the investment are asset gains (losses), net. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, goodwill impairment assessment, MSRs valuation, and income taxes. Management has evaluated subsequent events for potential recognition or disclosure. Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Business Combinations The Corporation accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the straight line method over their estimated useful lives of up to ten years. Loans that the Corporation acquires in connection with acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. If a reasonable expectation on the amount or timing of such cash flows can't be determined, accretion of the fair value discount for nonperforming loans will be recognized using the cost recovery method of accounting. For purchased credit-impaired loans, the difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Corporation to evaluate the need for an additional allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the non-accretable discount which the Corporation will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. The Corporation accounts for performing loans acquired in business combinations using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including credit, interest, and liquidity discounts. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing loans. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. See Note 2 for additional information on the Corporation's acquisitions. Investment Securities Securities are classified as held to maturity, available for sale, or equity on the consolidated balance sheets at the time of purchase. Investment securities classified as held to maturity, which management has the positive intent and ability to hold to maturity, are reported at amortized cost. Investment securities classified as available for sale, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of OCI. Investment securities classified as equity securities are carried at fair value with changes in fair value immediately reflected in the consolidated statements of income. Any decision to sell investment securities available for sale would be based on various factors, including, but not limited to, asset / liability management strategies, changes in interest rates or prepayment risks, liquidity needs, or regulatory capital considerations. Realized gains or losses on investment security sales (using specific identification method) are included in investment securities gains (losses), net, on the consolidated statements of income. Premiums and discounts are amortized or accreted into interest income over the estimated life (earlier of call date, maturity, or estimated life) of the related security, using a prospective method that approximates level yield. In certain situations, management may elect to transfer certain investment securities from the available for sale classification to the held to maturity classification. In such cases, the investment securities are reclassified at fair value at the time of transfer. Any unrealized gain or loss included in accumulated other comprehensive income (loss) at the time of transfer is retained therein and amortized over the remaining life of the investment security as an adjustment to yield. Declines in the fair value of investment securities (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the investment security is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, the financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions. In addition, the Corporation considers the intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Corporation has the intent to sell a security; (2) it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) the Corporation does not expect to recover the entire amortized cost basis of the security. If the Corporation intends to sell a security or if it is more likely than not that the Corporation will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If an entity does not intend to sell the security or it is more likely than not that it will not be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in OCI. Declines in value determined to be other-than-temporary are included in investment securities gains (losses), net, on the consolidated statements of income. See Note 3 for additional information on investment securities. FHLB and Federal Reserve Bank Stocks The Corporation is required to maintain Federal Reserve stock and FHLB stock as a member of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. See Note 3 for additional information on the FHLB and Federal Reserve Bank Stocks. Loans Held for Sale Residential Loans Held for Sale: Loans held for sale, which consist generally of current production of certain fixed-rate, first-lien residential mortgage loans, are carried at estimated fair value. As a result of holding these loans at fair value, changes in the secondary market is reflected in earnings immediately, as opposed to being dependent upon the timing of sales. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Commercial Loans Held for Sale: Loans held for sale are carried at the lower of cost or estimated fair value. The estimated fair value is based on a discounted cash flow analysis. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances, net of any deferred fees and costs on originated loans. Origination fee income received on loans and amounts representing the estimated direct costs of origination are deferred and amortized to interest income over the life of the loan using the effective interest method. An allowance for loan losses is established for estimated credit losses in the loan portfolio. See Allowance for Loan Losses below for further policy discussion. See also Note 4 for additional information on loans. Nonaccrual Loans: Management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. This determination is based on management's review of current information and other events regarding the borrowers’ ability to repay their obligations. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. Interest income on loans is based on the principal balance outstanding computed using the effective interest method. The accrual of interest income for commercial loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, while the accrual of interest income for consumer loans is discontinued when loans reach specific delinquency levels. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal payments, unless the loan is well secured and in the process of collection. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management’s practice to place such loans on a nonaccrual status immediately, rather than delaying such action until the loans become 90 days past due. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed, amortization of related deferred loan fees or costs is suspended, and income is recorded only to the extent that interest payments are subsequently received in cash and a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments received are applied to loan principal. While a loan is in nonaccrual status, some or all of the cash interest payments received may be treated as interest income on a cash basis as long as the remaining recorded investment in the loan (i.e., after charge off of identified losses, if any) is deemed to be fully collectible. The determination as to the ultimate collectability of the loan's remaining recorded investment must be supported by a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment, including consideration of the borrower’s sustained historical repayment performance and other relevant factors. A nonaccrual loan is returned to accrual status when all delinquent principal and interest payments become current in accordance with the terms of the loan agreement, the borrower has demonstrated a period of sustained repayment performance, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. A sustained period of repayment performance generally would be a minimum of six months. See Note 4 for additional information on loans. Troubled Debt Restructurings (“Restructured Loans”): Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included and treated with all other nonaccrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings, which are considered and accounted for as impaired loans. Generally, restructured loans remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. See Note 4 for additional information on restructured loans. Allowance for Loan Losses: The allowance for loan losses is a reserve for estimated credit losses on individually evaluated loans determined to be impaired as well as estimated credit losses inherent in the loan portfolio, and is based on quarterly evaluations of the collectability and historical loss experience of loans. Actual credit losses, net of recoveries, are deducted from the allowance for loan losses. A provision for loan losses, which is a charge against earnings, is recorded to bring the allowance for loan losses to a level that, in management’s judgment, is appropriate to absorb probable losses in the loan portfolio. The methodology applied by the Corporation, designed to assess the appropriateness of the allowance for loan losses, is based upon management’s ongoing review and grading of the loan portfolio into criticized loan categories (defined as specific loans warranting either specific allocation, or a criticized status of special mention, substandard, doubtful, or loss). The methodology also focuses on evaluation of several factors, including but not limited to: evaluation of facts and issues related to specific loans, management’s ongoing review and grading of the loan portfolio, consideration of historical loan loss and delinquency experience on each portfolio category, trends in past due and nonaccrual loans, the level of potential problem loans, the risk characteristics of the various classifications of loans, changes in the size and character of the loan portfolio, concentrations of loans to specific borrowers or industries, existing economic conditions, the fair value of underlying collateral, and other qualitative and quantitative factors which could affect potential credit losses. Because each of the criteria used is subject to change, the analysis of the allowance for loan losses is not necessarily indicative of the trend of future loan losses in any particular loan category. The total allowance for loan losses is available to absorb losses from any segment of the loan portfolio. When an individual loan is determined to be impaired, the allowance for loan losses attributable to the loan is allocated based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flows, as well as evaluation of legal options available to the Corporation. The amount of impairment is measured based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the underlying collateral less applicable selling costs, or the observable market price of the loan. If foreclosure is probable or the loan is collateral dependent, impairment is measured using the fair value of the loan’s collateral, less costs to sell. Large groups of homogeneous loans, such as residential mortgage, home equity, and other consumer, are collectively evaluated for impairment. Management believes that the level of the allowance for loan losses is appropriate. While management uses currently available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on newly received appraisals, updated commercial customer financial statements, rapidly deteriorating cash flow, and changes in economic conditions that affect our customers. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require additions to the allowance for loan losses or may require that certain loan balances be charged off or downgraded into criticized loan categories when their credit evaluations differ from those of management based on their judgments about information available to them at the time of their examinations. See Loans above for further policy discussion and see Note 4 for additional information on the allowance for loan losses. OREO OREO is included in other assets on the consolidated balance sheets and is comprised of property acquired through a foreclosure proceeding or acceptance of a deed-in-lieu of foreclosure, and loans classified as in-substance foreclosure. OREO is recorded at the fair value of the underlying property collateral, less estimated selling costs. This fair value becomes the new cost basis for the foreclosed asset. The initial write-down, if any, will be recorded as a charge off against the allowance for loan losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues and expenses incurred in maintaining such properties, are expensed as incurred. OREO also includes bank premises formerly but no longer used for banking as well as property originally acquired for future expansion but no longer intended to be used for that purpose. Banking premises are transferred at the lower of carrying value or fair value, less estimated selling costs and any write-down is expensed as incurred. Allowance for Unfunded Commitments The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. The determination of the appropriate level of the allowance for unfunded commitments is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience and credit risk grading of the loan. Net adjustments to the allowance for unfunded commitments are included in the provision for credit losses on the consolidated statements of income. See Note 4 and Note 16 for additional information on the allowance for unfunded commitments. Premises and Equipment and Software Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the related assets or the lease term. Maintenance and repairs are charged to expense as incurred, while additions or major improvements are capitalized and depreciated over the estimated useful lives. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease terms, including extension options which the Corporation has determined are reasonably certain to be exercised, or the estimated useful lives of the improvements. Software, included in other assets on the consolidated balance sheets, is amortized on a straight-line basis over the lesser of the contract terms or the estimated useful life of the software. See Note 6 for additional information on premises and equipment. Leases The Corporation determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Corporation’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. Leases with original terms of less than 12 months are not capitalized. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Right-of-use assets represent the Corporation’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Corporation’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. The lease term includes options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis and adjustments are made to the right-of-use asset and lease liability if the Corporation is reasonably certain that an option will be exercised and will be expensed on a straight-line basis. Operating and finance leases are included within premises and equipment, net and other assets, respectively, on the consolidated balance sheets. See Note 7 for additional information on leases. Goodwill and Intangible Assets Goodwill and Other Intangible Assets: The excess of the cost of an acquisition over the fair value of the net assets acquired consists primarily of goodwill, core deposit intangibles, and other identifiable intangibles (primarily related to customer relationships acquired). Core deposit intangibles have estimated finite lives and are amortized on a straight-line basis to expense over a 10-year period. The other intangibles have estimated finite lives and are amortized on a straight-line basis over their expected useful life. The Corporation reviews long-lived assets and certain identifiable intangibles for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in which case an impairment charge would be recorded. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment testing process is conducted by assigning net assets and goodwill to each reporting unit. An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. See Note 5 for additional information on goodwill and other intangible assets. Mortgage Servicing Rights: The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. Upon sale, an MSRs asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. MSRs, when purchased, are initially recorded at fair value. As the Corporation has not elected to subsequently measure any class of servicing assets under the fair value measurement method, the Corporation follows the amortization method. MSRs are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and included in other intangible assets, net, on the consolidated balance sheets. The Corporation periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries. See Note 5 for additional information on MSRs. Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income taxes, which arise principally from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities, are included in the amounts provided for income taxes. In assessing the realizability of DTAs, management considers whether it is more likely than not that some portion or all of the DTAs will not be realized. The ultimate realization of DTAs is dependent upon the generation of future taxable income and tax planning strategies which will create taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the amount of taxes paid in available carryback years, projected future taxable income, and, if necessary, tax planning strategies in making this assessment. The Corporation files a consolidated federal income tax return and separate or combined state income tax returns. Accordingly, amounts equal to tax benefits of those subsidiaries having taxable federal or state losses or credits are offset by other subsidiaries that incur federal or state tax liabilities. It is the Corporation’s policy to provide for uncertainty in income taxes as a part of income tax expense based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2019 and 2018, the Corporation believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Corporation prevails in matters for which a liability for an unrecognized tax benefit was established or is required to pay amounts in excess of the liability established, the Corporation’s effective tax rate in a given financial statement period may be impacted. See Note 13 for additional information on income taxes. Derivative and Hedging Activities Derivative instruments, including derivative instruments embedded in other contracts, are carried at fair value on the consolidated balance sheets with changes in the fair value recorded to earnings or accumulated other comprehensive income, as appropriate. On the date the derivative contract is entered into, the Corporation designates the derivative as a fair value hedge (i.e., a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e., a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a free-standing derivative instrument. For a derivative designated as a fair value hedge, the changes in the fair value of the derivative instrument and the changes in the fair value of the hedged asset or liability are recognized in current period earnings as an increase or decrease to the carrying value of the hedged item on the balance sheet and in the related income statement account. Amounts within accumulated other comprehensive income are reclassified in |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions 2019 Completed Acquisitions: Huntington Wisconsin Branch Acquisition On June 14, 2019, the Corporation completed its acquisition of the Wisconsin branches of Huntington. The Corporation paid a 4% premium on acquired deposits. The conversion of the branches happened simultaneously with the close of the transaction and the acquisition expanded the Bank's presence into 13 new Wisconsin communities. As a result of the acquisition and other consolidations, a net of 14 branch locations were added. The Huntington branch acquisition constituted a business combination. The acquisition has been accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair value on the acquisition date. The determination of estimated fair values required management to make certain estimates that are subjective in nature and may require adjustments upon the availability of new information regarding facts and circumstances which existed at the date of acquisition (i.e., appraisals) for up to a year following the acquisition. The Corporation recorded approximately $7 million in goodwill related to the Huntington branch acquisition during the second quarter of 2019 and approximately $210,000 during the third quarter of 2019. Upon review of information relating to events and circumstances existing at the acquisition date, and in accordance with applicable accounting guidance, the Corporation remeasured select previously reported fair value amounts. The adjustment to goodwill was driven by an update that decreased the fair value of furniture acquired. Goodwill created by the acquisition is tax deductible. See Note 5 for additional information on goodwill, as well as the carrying amount and amortization of core deposit intangible assets related to the Huntington branch acquisition. The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date related to Huntington branch acquisition: ($ in Thousands) Purchase Accounting Adjustments June 14, 2019 Assets Cash and cash equivalents $ — $ 551,250 Loans (1,552) 116,346 Premises and equipment, net 4,800 22,430 Goodwill 7,286 Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) 22,630 22,630 Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) (2,561) 5,263 Others assets $ — 559 Total assets $ 725,764 Liabilities Deposits $ 156 $ 725,173 Other liabilities $ 70 590 Total liabilities $ 725,764 For a description of the methods used to determine the fair value of significant assets and liabilities presented on the balance sheet above see Assumptions section of this Note. 2019 Pending Acquisitions: On July 25, 2019, the Corporation entered into an agreement to acquire Illinois-based First Staunton for cash consideration of approximately $76 million. Regulatory approval for the transaction was received from the OCC on October 10, 2019. The transaction is subject to customary closing conditions, and is expected to close in February 2020. 2018 Completed Acquisitions: Bank Mutual Acquisition On February 1, 2018, the Corporation completed its acquisition of Bank Mutual in a stock transaction valued at approximately $482 million. Bank Mutual was a diversified financial services company headquartered in Milwaukee, Wisconsin. The merger resulted in a combined company with a larger market presence in markets the Corporation currently operates in, as well as expansion into nearly a dozen new markets. Under the terms of the Agreement and Plan of Merger dated July 20, 2017 (the "Merger Agreement"), Bank Mutual’s shareholders received 0.422 shares of the Corporation's common stock for each share of Bank Mutual common stock. The Corporation issued approximately 19.5 million shares for a total deal value of approximately $482 million based on the closing sale price of a share of common stock of the Corporation on January 31, 2018. The banking subsidiary of Bank Mutual merged with and into Associated Bank, N.A. on June 24, 2018. Goodwill related to the Bank Mutual acquisition increased $6 million during the second quarter of 2018 and an additional $2 million during the third quarter of 2018 to $175 million. Goodwill created by the acquisition of Bank Mutual is not tax deductible. The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date related to Bank Mutual: ($ in Thousands) Purchase Accounting Adjustments February 1, 2018 Assets Cash and cash equivalents $ — $ 78,052 Investment securities (6,238) 452,867 Federal Home Loan Bank stock, at cost — 20,026 Loans (48,043) 1,875,877 Premises and equipment, net 2,930 42,689 Bank owned life insurance (24) 65,390 Goodwill 175,499 Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) 58,100 58,100 Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) 199 4,848 Others assets $ 7,054 47,158 Total assets $ 2,820,506 Liabilities Deposits $ 2,498 $ 1,840,950 Other borrowings 1,875 431,886 Other liabilities $ 4,487 65,982 Total liabilities $ 2,338,818 Total consideration paid $ 481,688 For a description of the methods used to determine the fair value of significant assets and liabilities presented on the balance sheet above see Assumptions section of this Note. For loans acquired, the contractual amounts due, expected cash flows to be collected, interest component, and fair value as of the respective acquisition dates were as follows: February 1, 2018 ($ in Thousands) Acquired Performing Loans Acquired Impaired Loans Total Contractual required principal and interest at acquisition $ 1,899,932 $ 23,988 $ 1,923,920 Contractual cash flows not expected to be collected (nonaccretable discount) — (1,866) (1,866) Expected cash flows at acquisition 1,899,932 22,122 1,922,054 Interest component of expected cash flows (accretable discount) (41,324) (4,853) (46,177) Fair value of acquired loans $ 1,858,608 $ 17,269 $ 1,875,877 Assumptions: Loans: Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan, amortization status, and current discount rates. Loans were grouped together according to similar characteristics when applying various valuation techniques. CDIs: This intangible asset represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds, and the interest costs associated with customer deposits. The CDIs are being amortized on a straight-line basis over 10 years. Time deposits: The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits. FHLB borrowings: The fair values of FHLB advances are estimated based on quoted market prices for the instrument if available, or for similar instruments if not available, or by using discounted cash flow analyses, based on current incremental borrowing rates for similar types of instruments. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities are classified as available for sale, held to maturity, or equity on the consolidated balance sheets at the time of purchase. See Note 1 for the Corporation’s accounting policy for investment securities. The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2019 were as follows: ($ in Thousands) Amortized Gross Gross Fair Value Investment securities available for sale Obligations of state and political subdivisions (municipal securities) (a) $ 529,908 $ 16,269 $ (18) $ 546,160 Residential mortgage-related securities FNMA / FHLMC 131,158 1,562 (59) 132,660 GNMA 982,941 3,887 (1,689) 985,139 Commercial mortgage-related securities FNMA / FHLMC 19,929 1,799 — 21,728 GNMA 1,314,836 7,403 (12,032) 1,310,207 FFELP asset-backed securities 270,178 — (6,485) 263,693 Other debt securities 3,000 — — 3,000 Total investment securities available for sale $ 3,251,950 $ 30,920 $ (20,284) $ 3,262,586 Investment securities held to maturity U.S. Treasury securities $ 999 $ 19 $ — $ 1,018 Obligations of state and political subdivisions (municipal securities) (a) 1,418,569 69,775 (1,118) 1,487,227 Residential mortgage-related securities FNMA / FHLMC 81,676 1,759 (15) 83,420 GNMA 269,523 1,882 (1,108) 270,296 GNMA commercial mortgage-related securities 434,317 6,308 (6,122) 434,503 Total investment securities held to maturity $ 2,205,083 $ 79,744 $ (8,363) $ 2,276,465 (a) As permitted by ASU 2019-04, which was adopted during the third quarter of 2019, the Corporation made a one-time election during the third quarter of 2019 to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows: ($ in Thousands) Amortized Gross Gross Fair Value Investment securities available for sale U.S. Treasury securities $ 1,000 $ — $ (1) $ 999 Residential mortgage-related securities: FNMA / FHLMC 296,296 2,466 (3,510) 295,252 GNMA 2,169,943 473 (41,885) 2,128,531 Private-label 1,007 — (4) 1,003 GNMA commercial mortgage-related securities 1,273,309 — (52,512) 1,220,797 FFELP asset-backed securities 297,347 711 (698) 297,360 Other debt securities 3,000 — — 3,000 Total investment securities available for sale $ 4,041,902 $ 3,649 $ (98,610) $ 3,946,941 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) $ 1,790,683 $ 8,255 $ (15,279) $ 1,783,659 Residential mortgage-related securities FNMA / FHLMC 92,788 169 (1,795) 91,162 GNMA 351,606 1,611 (8,181) 345,035 GNMA commercial mortgage-related securities 505,434 7,559 (22,579) 490,414 Total investment securities held to maturity $ 2,740,511 $ 17,593 $ (47,835) $ 2,710,271 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of investment securities available for sale and held to maturity at December 31, 2019, are shown below: Available for Sale Held to Maturity ($ in Thousands) Amortized Fair Amortized Fair Due in one year or less $ 2,795 $ 2,800 $ 29,033 $ 29,218 Due after one year through five years 32,399 32,901 82,023 83,245 Due after five years through ten years 317,292 326,361 136,138 140,704 Due after ten years 180,422 187,098 1,172,373 1,235,077 Total debt securities 532,908 549,160 1,419,568 1,488,245 Residential mortgage-related securities FNMA / FHLMC 131,158 132,660 81,676 83,420 GNMA 982,941 985,139 269,523 270,296 Commercial mortgage-related securities FNMA / FHLMC 19,929 21,728 — — GNMA 1,314,836 1,310,207 434,317 434,503 FFELP asset-backed securities 270,178 263,693 — — Total investment securities $ 3,251,950 $ 3,262,586 $ 2,205,083 $ 2,276,465 Ratio of Fair Value to Amortized Cost 100.3 % 103.2 % Investment securities gains (losses), net includes proceeds from the sale of investment securities as well as any applicable write-ups or write-downs of investment securities. The proceeds from the sale and write-up of investment securities for each of the three years ended December 31 are shown below. There were no other-than-temporary impairment write-downs on investment securities for 2019, 2018, or 2017. ($ in Thousands) 2019 2018 2017 Gross gains on available for sale securities $ 6,374 $ 1,954 $ — Gross gains on held to maturity securities — — 439 Total gains 6,374 1,954 439 Gross (losses) on available for sale securities (13,861) (3,938) — Gross (losses) on held to maturity securities — — (5) Total (losses) (13,861) (3,938) (5) Write-up of equity securities without readily determinable fair values 13,444 — — Investment securities gains (losses), net $ 5,957 $ (1,985) $ 434 Proceeds from sales of investment securities $ 1,367,476 $ 601,130 $ 18,467 During the third quarter of 2019, the Corporation made a one-time election to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale, as permitted by the adoption of ASU 2019-04 during the quarter. The Corporation sold shorter duration, lower yielding municipal securities that were included in the transfer for proceeds of $157 million at a gain of $3 million, with the proceeds being reinvested into longer duration, higher yielding held to maturity municipal securities. Additionally, during the first nine months of 2019, the Corporation sold $1.2 billion of taxable, floating rate ABS and shorter duration MBS, CMBS, and CMOs Agency securities, with the proceeds utilized to pay down borrowings and to reinvest into higher yielding Agency related mortgage securities with slightly longer durations, repositioning the portfolio for a declining rate environment. The Corporation also donated 42,039 shares of Visa Class B restricted shares to the Corporation's Charitable Remainder Trust during the second quarter of 2019, and the subsequent sale of those shares by the Trust resulted in an observable market price. As a result, the Corporation wrote up its remaining 77,000 Visa Class B restricted shares to fair value. Based on the existing transfer restriction and the uncertainty of covered litigation, the shares were previously carried at a zero cost basis. During 2018, the Corporation executed a strategy to improve the yield on securities and increase interest income during the current and future calendar years. During the third quarter of 2018, the Corporation sold mortgage-related securities totaling approximately $108 million at a slight gain with all proceeds reinvested into higher yielding securities. The tax equivalent yield of the securities sold was 3.08% while the reinvestment was at 3.51%. During the second quarter of 2018, the Corporation also sold $40 million of lower yielding GNMA commercial mortgage-related securities. In addition, on February 1, 2018, the date the Bank Mutual acquisition was completed, the Corporation sold Bank Mutual's entire $453 million securities portfolio. The Corporation originally reinvested the proceeds from the Bank Mutual securities portfolio into GNMA residential mortgage-related securities with the goal of reinvesting future cash flows into municipal securities. That strategy was completed during August 2018. During 2017, the Corporation sold approximately $18 million of municipal securities classified as held to maturity due to significant credit concerns and negative actions taken by credit rating agencies, primarily as a result of budgetary pressures in the State of Illinois and State of Connecticut. These sales resulted in a net gain of approximately $434,000. Investment securities with a carrying value of approximately $2.6 billion and $3.0 billion at December 31, 2019 and December 31, 2018, respectively, were pledged to secure certain deposits or for other purposes as required or permitted by law. The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at December 31, 2019: Less than 12 months 12 months or more Total ($ in Thousands) Number Unrealized Fair Number Unrealized Fair Unrealized (Losses) Fair Investment securities available for sale Obligations of state and political subdivisions (municipal securities) 4 $ (18) 1,225 — $ — $ — $ (18) $ 1,225 Residential mortgage-related securities FNMA / FHLMC — — — 4 (59) 34,807 (59) 34,807 GNMA 18 (924) 322,394 3 (766) 79,461 (1,689) 401,856 GNMA commercial mortgage-related securities 22 (810) 258,218 42 (11,222) 621,307 (12,032) 879,524 FFELP asset-backed securities 19 (6,092) 250,780 2 (393) 12,913 (6,485) 263,693 Other debt securities 2 — 2,000 — — — — 2,000 Total 65 $ (7,843) $ 834,616 51 $ (12,440) $ 748,487 $ (20,284) $ 1,583,104 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) 52 $ (1,105) $ 77,562 6 $ (13) $ 2,378 $ (1,118) $ 79,940 Residential mortgage-related securities FNMA / FHLMC 1 (6) 1,242 1 (9) 833 (15) 2,075 GNMA 12 (1,059) 187,261 8 (49) 6,587 (1,108) 193,849 GNMA commercial mortgage-related securities 2 (29) 26,202 21 (6,093) 357,733 (6,122) 383,935 Total 67 $ (2,199) $ 292,267 36 $ (6,164) $ 367,532 $ (8,363) $ 659,799 For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018: Less than 12 months 12 months or more Total ($ in Thousands) Number Unrealized Fair Number Unrealized Fair Unrealized Fair Investment securities available for sale U.S. Treasury securities — $ — $ — 1 $ (1) $ 999 $ (1) $ 999 Residential mortgage-related securities FNMA / FHLMC 15 (31) 17,993 17 (3,479) 189,405 (3,510) 207,398 GNMA 12 (4,529) 452,183 79 (37,355) 1,598,159 (41,885) 2,050,342 Private-label 1 (4) 1,003 — — — (4) 1,003 GNMA commercial mortgage-related securities — — — 93 (52,512) 1,220,854 (52,512) 1,220,854 FFELP asset-backed securities 13 (698) 142,432 — — — (698) 142,432 Total 41 $ (5,262) $ 613,612 190 $ (93,347) $ 3,009,417 $ (98,610) $ 3,623,028 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) 272 $ (2,860) $ 313,212 752 $ (12,419) $ 509,374 $ (15,279) $ 822,586 Residential mortgage-related securities FNMA / FHLMC 13 (780) 57,896 22 (1,015) 28,888 (1,795) 86,784 GNMA 13 (414) 19,822 66 (7,767) 320,387 (8,181) 340,209 GNMA commercial mortgage-related securities — — — 25 (22,579) 490,414 (22,579) 490,414 Total 298 $ (4,053) $ 390,929 865 $ (43,780) $ 1,349,063 $ (47,835) $ 1,739,992 The Corporation reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Corporation may consider in the other-than-temporary impairment analysis include the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions. Based on the Corporation’s evaluation, management does not believe any unrealized loss at December 31, 2019 represents an other-than-temporary impairment as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions, and not credit deterioration. The unrealized losses reported for municipal securities relate to various state and local political subdivisions and school districts. The unrealized losses at December 31, 2019 for mortgage-related securities have declined due to the decrease in overall interest rates. The U.S. Treasury 3 year and 5 year rates decreased by 84 bp and 82 bp, respectively, from December 31, 2018. The Corporation does not intend to sell nor does it believe that it will be required to sell the securities in an unrealized loss position before recovery of their amortized cost basis. FHLB and Federal Reserve Bank Stocks: The Corporation is required to maintain Federal Reserve stock and FHLB stock as a member bank of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. At December 31, 2019 and 2018, the Corporation had FHLB stock of $149 million and $173 million, respectively. The Corporation had Federal Reserve Bank stock of $78 million and $77 million at December 31, 2019 and 2018, respectively. Equity Securities Equity securities with readily determinable fair values: The Corporation's portfolio of equity securities with readily determinable fair values is primarily comprised of CRA Qualified Investment mutual funds. At both December 31, 2019 and 2018, the Corporation had equity securities with readily determinable fair values of $2 million. Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values consists of Visa Class B restricted shares that the Corporation received in 2008 as part of Visa's initial public offering. During the second quarter of 2019, the Corporation donated 42,039 shares of Visa Class B restricted shares to the Corporation's Charitable Remainder Trust, and the subsequent sale of those shares by the Trust resulted in an observable market price. As a result, the Corporation wrote up their remaining 77,000 Visa Class B restricted shares to fair value. Based on the existing transfer restriction and the uncertainty of the covered litigation, the Visa Class B restricted shares were previously carried at a zero cost basis. Thus, the Corporation had equity securities without readily determinable fair values of $13 million at December 31, 2019 and $0 at December 31, 2018. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans Loans at December 31 are summarized below: ($ in Thousands) 2019 2018 Commercial and industrial $ 7,354,594 $ 7,398,044 Commercial real estate - owner occupied 911,265 920,443 Commercial and business lending 8,265,858 8,318,487 Commercial real estate - investor 3,794,517 3,751,554 Real estate construction 1,420,900 1,335,031 Commercial real estate lending 5,215,417 5,086,585 Total commercial 13,481,275 13,405,072 Residential mortgage 8,136,980 8,277,712 Home equity 852,025 894,473 Other consumer 351,159 363,171 Total consumer 9,340,164 9,535,357 Total loans (a)(b) $ 22,821,440 $ 22,940,429 (a) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages as well as $33 million of nonaccrual and performing restructured loans. (b) Includes $2 million and $5 million of purchased credit-impaired loans at December 31, 2019 and December 31, 2018, respectively. The Corporation has granted loans to its directors, executive officers, or their related interests. These loans were made on substantially the same terms, including rates and collateral, as those prevailing at the time for comparable transactions with other unrelated customers, and do not involve more than a normal risk of collection. These loans to related parties are summarized below: ($ in Thousands) 2019 2018 Balance at beginning of year $ 17,831 $ 20,260 New loans 3,673 3,076 Repayments (8,053) (5,017) Change due to status of executive officers and directors 3,320 (489) Balance at end of year $ 16,772 $ 17,831 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2019: ($ in Thousands) Pass Special Mention Potential Problem Nonaccrual Total Commercial and industrial $ 7,118,448 $ 79,525 $ 110,308 $ 46,312 $ 7,354,594 Commercial real estate - owner occupied 866,193 25,115 19,889 67 911,265 Commercial and business lending 7,984,641 104,641 130,197 46,380 8,265,858 Commercial real estate - investor 3,620,785 139,873 29,449 4,409 3,794,517 Real estate construction 1,420,374 33 — 493 1,420,900 Commercial real estate lending 5,041,159 139,906 29,449 4,902 5,215,417 Total commercial 13,025,800 244,547 159,646 51,282 13,481,275 Residential mortgage 8,077,122 563 1,451 57,844 8,136,980 Home equity 841,757 1,164 — 9,104 852,025 Other consumer 350,260 748 — 152 351,159 Total consumer 9,269,139 2,475 1,451 67,099 9,340,164 Total loans (a) $ 22,294,939 $ 247,022 $ 161,097 $ 118,380 $ 22,821,440 (a) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages. In addition, the Corporation sold $33 million of residential mortgages and home equity loans, of which $21 million were pass loans and $12 million were nonaccrual loans. The following table presents commercial and consumer loans by credit quality indicator at December 31, 2018 : ($ in Thousands) Pass Special Mention Potential Problem Nonaccrual Total Commercial and industrial $ 7,162,370 $ 78,075 $ 116,578 $ 41,021 $ 7,398,044 Commercial real estate - owner occupied 854,265 6,257 55,964 3,957 920,443 Commercial and business lending 8,016,635 84,332 172,542 44,978 8,318,487 Commercial real estate - investor 3,653,642 28,479 67,481 1,952 3,751,554 Real estate construction 1,321,447 8,771 3,834 979 1,335,031 Commercial real estate lending 4,975,089 37,249 71,315 2,931 5,086,585 Total commercial 12,991,724 121,582 243,856 47,909 13,405,072 Residential mortgage 8,203,729 434 5,975 67,574 8,277,712 Home equity 880,808 1,223 103 12,339 894,473 Other consumer 362,343 749 — 79 363,171 Total consumer 9,446,881 2,406 6,078 79,992 9,535,357 Total loans $ 22,438,605 $ 123,988 $ 249,935 $ 127,901 $ 22,940,429 Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, an appropriate allowance for loan losses, allowance for unfunded commitments, nonaccrual, and charge off policies. See Note 1 for the Corporation's accounting policy for loans. For commercial loans, management has determined the pass credit quality indicator to include credits that exhibit acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits performing in accordance with the original contractual terms. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, which may jeopardize liquidation of the debt, and are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships in nonaccrual status or those with their terms restructured in a troubled debt restructuring meet this impaired loan definition. Commercial loans classified as special mention, potential problem, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass and performing rated credits are reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted. The following table presents loans by past due status at December 31, 2019: ($ in Thousands) Current 30-59 Days 60-89 Days 90 Days or More Nonaccrual (a) Total Commercial and industrial $ 7,307,118 $ 576 $ 245 $ 342 $ 46,312 $ 7,354,594 Commercial real estate - owner occupied 909,828 1,369 — — 67 911,265 Commercial and business lending 8,216,947 1,945 245 342 46,380 8,265,858 Commercial real estate - investor 3,788,296 1,812 — — 4,409 3,794,517 Real estate construction 1,420,310 64 33 — 493 1,420,900 Commercial real estate lending 5,208,606 1,876 33 — 4,902 5,215,417 Total commercial 13,425,552 3,821 278 342 51,282 13,481,275 Residential mortgage 8,069,863 8,749 525 — 57,844 8,136,980 Home equity 837,274 4,483 1,164 — 9,104 852,025 Other consumer 347,007 1,135 949 1,917 152 351,159 Total consumer 9,254,144 14,366 2,638 1,917 67,099 9,340,164 Total loans (b) $ 22,679,696 $ 18,188 $ 2,916 $ 2,259 $ 118,380 $ 22,821,440 (a) Of the total nonaccrual loans, $48 million, or 41%, were current with respect to payment at December 31, 2019. (b) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages. In addition, the Corporation sold $33 million of residential mortgages and home equity loans, of which $21 million were accruing current loans, $12 million were nonaccrual loans, and approximately $200,000 were 30-89 days past due accruing loans. The following table presents loans by past due status at December 31, 2018: ($ in Thousands) Current 30-59 Days 60-89 Days 90 Days or More Nonaccrual (a) Total Commercial and industrial $ 7,356,187 $ 187 $ 338 $ 311 $ 41,021 $ 7,398,044 Commercial real estate - owner occupied 913,787 2,580 119 — 3,957 920,443 Commercial and business lending 8,269,974 2,767 457 311 44,978 8,318,487 Commercial real estate - investor 3,745,835 2,954 813 — 1,952 3,751,554 Real estate construction 1,333,722 330 — — 979 1,335,031 Commercial real estate lending 5,079,557 3,284 813 — 2,931 5,086,585 Total commercial 13,349,531 6,051 1,270 311 47,909 13,405,072 Residential mortgage 8,200,432 9,272 434 — 67,574 8,277,712 Home equity 876,085 4,826 1,223 — 12,339 894,473 Other consumer 358,970 1,401 868 1,853 79 363,171 Total consumer 9,435,487 15,499 2,525 1,853 79,992 9,535,357 Total loans $ 22,785,019 $ 21,550 $ 3,795 $ 2,165 $ 127,901 $ 22,940,429 (a) Of the total nonaccrual loans, $74 million, or 58%, were current with respect to payment at December 31, 2018. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $2 million of purchased credit-impaired loans, at December 31, 2019: ($ in Thousands) Recorded Unpaid Related Average Interest Loans with a related allowance Commercial and industrial $ 47,249 $ 63,346 $ 12,010 $ 45,290 $ 1,832 Commercial real estate - owner occupied 1,676 1,682 19 1,774 88 Commercial and business lending 48,924 65,028 12,029 47,064 1,919 Commercial real estate - investor 928 2,104 15 950 15 Real estate construction 477 559 67 494 30 Commercial real estate lending 1,405 2,663 82 1,445 45 Total commercial 50,329 67,691 12,111 48,509 1,965 Residential mortgage 21,450 22,625 2,740 23,721 856 Home equity 3,076 3,468 1,190 3,756 191 Other consumer 1,247 1,249 125 1,250 1 Total consumer 25,773 27,342 4,055 28,726 1,047 Total loans $ 76,102 $ 95,033 $ 16,165 $ 77,235 $ 3,012 Loans with no related allowance Commercial and industrial $ 14,787 $ 33,438 $ — $ 20,502 $ 63 Commercial real estate - owner occupied — — — — — Commercial and business lending 14,787 33,438 — 20,502 63 Commercial real estate - investor 3,705 3,705 — 3,980 159 Real estate construction — — — — — Commercial real estate lending 3,705 3,705 — 3,980 159 Total commercial 18,491 37,142 — 24,482 222 Residential mortgage 14,104 14,461 — 10,962 373 Home equity 1,346 1,383 — 1,017 21 Other consumer — — — — — Total consumer 15,450 15,845 — 11,979 394 Total loans $ 33,941 $ 52,987 $ — $ 36,462 $ 616 Total Commercial and industrial $ 62,035 $ 96,784 $ 12,010 $ 65,792 $ 1,895 Commercial real estate - owner occupied 1,676 1,682 19 1,774 88 Commercial and business lending 63,711 98,466 12,029 67,566 1,982 Commercial real estate - investor 4,633 5,808 15 4,931 174 Real estate construction 477 559 67 494 30 Commercial real estate lending 5,110 6,367 82 5,425 204 Total commercial 68,820 104,833 12,111 72,991 2,186 Residential mortgage 35,554 37,087 2,740 34,683 1,229 Home equity 4,422 4,851 1,190 4,773 211 Other consumer 1,247 1,249 125 1,250 1 Total consumer 41,223 43,187 4,055 40,706 1,441 Total loans (a) $ 110,043 $ 148,020 $ 16,165 $ 113,697 $ 3,628 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 63% of the unpaid principal balance at December 31, 2019. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018: ($ in Thousands) Recorded Unpaid Related Average Interest Loans with a related allowance Commercial and industrial $ 40,747 $ 42,131 $ 5,721 $ 52,461 $ 1,167 Commercial real estate - owner occupied 2,080 2,087 24 2,179 104 Commercial and business lending 42,827 44,218 5,745 54,640 1,271 Commercial real estate - investor 799 805 28 827 38 Real estate construction 510 589 75 533 32 Commercial real estate lending 1,309 1,394 103 1,360 70 Total commercial 44,136 45,612 5,848 56,000 1,341 Residential mortgage 41,691 45,149 6,023 42,687 1,789 Home equity 9,601 10,539 3,312 10,209 566 Other consumer 1,181 1,183 121 1,184 3 Total consumer 52,473 56,871 9,456 54,080 2,358 Total loans $ 96,609 $ 102,483 $ 15,304 $ 110,079 $ 3,699 Loans with no related allowance Commercial and industrial $ 22,406 $ 45,024 $ — $ 21,352 $ (344) Commercial real estate - owner occupied 3,772 4,823 — 3,975 — Commercial and business lending 26,178 49,847 — 25,327 (344) Commercial real estate - investor 1,585 2,820 — 980 68 Real estate construction — — — — — Commercial real estate lending 1,585 2,820 — 980 68 Total commercial 27,763 52,667 — 26,307 (276) Residential mortgage 8,795 9,074 — 8,790 203 Home equity 523 542 — 530 — Other consumer — — — — — Total consumer 9,318 9,616 — 9,320 203 Total loans $ 37,081 $ 62,283 $ — $ 35,627 $ (73) Total Commercial and industrial $ 63,153 $ 87,155 $ 5,721 $ 73,813 $ 823 Commercial real estate - owner occupied 5,852 6,910 24 6,154 104 Commercial and business lending 69,005 94,065 5,745 79,967 927 Commercial real estate - investor 2,384 3,625 28 1,807 106 Real estate construction 510 589 75 533 32 Commercial real estate lending 2,894 4,214 103 2,340 138 Total commercial 71,899 98,279 5,848 82,307 1,065 Residential mortgage 50,486 54,223 6,023 51,477 1,992 Home equity 10,124 11,081 3,312 10,739 566 Other consumer 1,181 1,183 121 1,184 3 Total consumer 61,791 66,487 9,456 63,400 2,561 Total loans (a) $ 133,690 $ 164,766 $ 15,304 $ 145,707 $ 3,626 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 72% of the unpaid principal balance at December 31, 2018. Troubled Debt Restructurings (“Restructured Loans”) Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See Note 1 for the Corporation's accounting policy for troubled debt restructurings. The following table presents nonaccrual and performing restructured loans by loan portfolio: December 31, 2019 December 31, 2018 December 31, 2017 ($ in Thousands) Performing Nonaccrual Restructured Loans (a) Performing Nonaccrual Restructured Loans (a) Performing Nonaccrual Restructured Loans (a) Commercial and industrial $ 16,678 $ 7,376 $ 25,478 $ 249 $ 30,047 $ 1,776 Commercial real estate - owner occupied 1,676 — 2,080 — 3,989 — Commercial real estate - investor 293 — 799 933 14,389 — Real estate construction 298 179 311 198 310 157 Residential mortgage 3,955 13,035 16,036 22,279 17,068 18,991 Home equity 1,896 1,904 7,385 2,627 7,705 2,537 Other consumer 1,246 1 1,174 6 1,110 25 Total restructured loans (b) $ 26,041 $ 22,494 $ 53,263 $ 26,292 $ 74,618 $ 23,486 (a) Nonaccrual restructured loans have been included within nonaccrual loans. (b) During the third quarter of 2019, the Corporation sold $21 million of performing restructured loans, of which $18 million were residential mortgages and $3 million were home equity loans. In addition, the Corporation sold $7 million of nonaccrual restructured residential mortgage loans during the third quarter of 2019. The Corporation had a recorded investment of approximately $16 million in loans modified in troubled debt restructurings for the year ended December 31, 2019, of which approximately $3 million were in accrual status and $13 million were in nonaccrual pending a sustained period of repayment. As of December 31, 2019 there was approximately $3 million of commitments to lend additional funds to borrowers with restructured loans. The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio, the recorded investment, and unpaid principal balance: Years Ended December 31, 2019 2018 2017 ($ in Thousands) Number Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded Investment (a) Unpaid Principal Balance (b) Commercial and industrial 6 $ 7,588 $ 7,703 5 $ 1,315 $ 1,330 8 $ 3,991 $ 6,339 Commercial real estate - owner occupied — — — — — — 2 690 690 Commercial real estate - investor — — — 2 1,393 1,472 — — — Real estate construction 1 77 77 1 78 80 — — — Residential mortgage 53 7,436 7,517 41 6,977 7,210 45 4,238 4,364 Home equity 24 831 845 34 1,649 1,681 22 507 507 Other consumer 1 8 8 3 17 19 — — — Total 85 $ 15,940 $ 16,150 86 $ 11,429 $ 11,792 77 $ 9,426 $ 11,900 (a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment. Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. For the year ended December 31, 2019, restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions, interest rate concessions, payment schedule modifications, or a combination of these concessions. Restructured loan modifications of home equity and residential mortgage loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions. The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the year ended December 31, 2019, 2018, and 2017, respectively, as well as the recorded investment in these restructured loans as of December 31, 2019, 2018, and 2017, respectively: Years Ended December 31, 2019 2018 2017 ($ in Thousands) Number of Recorded Number of Recorded Number of Recorded Commercial and industrial — $ — 3 $ — 2 $ — Commercial real estate — investor 1 461 — — — — Residential mortgage 38 5,630 20 3,553 36 3,137 Home equity 27 868 32 1,688 27 735 Other consumer — — — — 1 7 Total 66 $ 6,959 55 $ 5,241 66 $ 3,879 All loans modified in a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, is considered in the determination of an appropriate level of the allowance for loan losses. Allowance for Credit Losses The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the allowance for loan losses represents management’s estimate of an amount appropriate to provide for probable credit losses in the loan portfolio at the balance sheet date. See Note 1 for the Corporation's accounting policy on the allowance for loan losses. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 16 for additional information on the allowance for unfunded commitments. A summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2019, is as follows: ($ in Thousands) Commercial Commercial Commercial Real estate Residential Home Other Total December 31, 2018 $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Charge offs (63,315) (222) — (60) (3,322) (1,846) (5,548) (74,313) Recoveries 11,875 2,795 31 302 692 2,599 868 19,161 Net charge offs (51,441) 2,573 31 243 (2,630) 753 (4,681) (55,152) Provision for loan losses 33,738 (1,543) (361) (3,568) (6,005) (9,093) 5,332 18,500 December 31, 2019 $ 91,133 $ 10,284 $ 40,514 $ 24,915 $ 16,960 $ 10,926 $ 6,639 $ 201,371 Allowance for loan losses Individually evaluated for impairment $ 12,010 $ 19 $ 15 $ 67 $ 2,740 $ 1,190 $ 125 $ 16,165 Collectively evaluated for impairment 79,123 10,265 40,498 24,848 14,220 9,737 6,514 185,205 Total allowance for loan losses $ 91,133 $ 10,284 $ 40,514 $ 24,915 $ 16,960 $ 10,926 $ 6,639 $ 201,371 Loans Individually evaluated for impairment $ 62,035 $ 1,676 $ 4,633 $ 477 $ 35,554 $ 4,422 $ 1,247 $ 110,043 Collectively evaluated for impairment 7,292,217 909,010 3,789,755 1,420,416 8,100,958 847,577 349,912 22,709,845 Acquired and accounted for under ASC 310-30 (a) 342 579 129 7 469 26 — 1,552 Total loans $ 7,354,594 $ 911,265 $ 3,794,517 $ 1,420,900 $ 8,136,980 $ 852,025 $ 351,159 $ 22,821,440 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2018, is as follows: ($ in Thousands) Commercial Commercial Commercial Real estate Residential Home Other Total December 31, 2017 $ 123,068 $ 10,352 $ 41,059 $ 34,370 $ 29,607 $ 22,126 $ 5,298 $ 265,880 Charge offs (30,837) (1,363) (7,914) (298) (1,627) (3,236) (5,261) (50,536) Recoveries 13,714 639 668 446 1,271 2,628 812 20,179 Net charge offs (17,123) (724) (7,246) 149 (355) (608) (4,448) (30,358) Provision for loan losses 2,890 (373) 7,031 (6,279) (3,657) (2,252) 5,138 2,500 December 31, 2018 $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Allowance for loan losses Individually evaluated for impairment $ 5,721 $ 24 $ 28 $ 75 $ 6,023 $ 3,312 $ 121 $ 15,304 Collectively evaluated for impairment 103,114 9,231 40,816 28,165 19,572 15,954 5,867 222,719 Total allowance for loan losses $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Loans Individually evaluated for impairment $ 63,153 $ 5,852 $ 2,384 $ 510 $ 50,486 $ 10,124 $ 1,181 $ 133,690 Collectively evaluated for impairment 7,331,898 913,708 3,748,883 1,334,500 8,226,642 884,266 361,990 22,801,887 Acquired and accounted for under ASC 310-30 (a) 2,994 883 287 21 584 83 — 4,853 Total loans $ 7,398,044 $ 920,443 $ 3,751,554 $ 1,335,031 $ 8,277,712 $ 894,473 $ 363,171 $ 22,940,429 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." The following table provides a summary of the changes in allowance for loan losses in the Corporation's oil and gas portfolio at December 31, 2019 and December 31, 2018: Years Ended December 31, ($ in Millions) 2019 2018 Balance at beginning of period $ 12 $ 27 Charge offs (50) (24) Recoveries 5 6 Net Charge offs (44) (17) Provision for loan losses 45 2 Balance at end of period $ 12 $ 12 Allowance for loan losses Individually evaluated for impairment $ 3 $ — Collectively evaluated for impairment 9 12 Total allowance for loan losses $ 12 $ 12 Oil & Gas Allowance for loan losses to Total Oil & Gas Loans 2.56 % 1.62 % Loans Individually evaluated for impairment $ 23 $ 22 Collectively evaluated for impairment 460 725 Total loans $ 484 $ 747 The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 16 for additional information on the allowance for unfunded commitments and see Note 1 for the Corporation's accounting policy for allowance for unfunded commitments. A summary of the changes in the allowance for unfunded commitments was as follows: Years Ended December 31, ($ in Thousands) 2019 2018 2017 Allowance for Unfunded Commitments Balance at beginning of period $ 24,336 $ 24,400 $ 25,400 Provision for unfunded commitments (2,500) (2,500) (1,000) Amount recorded at acquisition 70 2,436 — Balance at end of period $ 21,907 $ 24,336 $ 24,400 Loans Acquired in Acquisition Loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. Acquired loans are segregated into two types: • Performing loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. • Nonperforming loans are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination. For performing loans the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans. In accordance with ASC 310-30, purchased credit-impaired loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows. If a reasonable expectation on the amount or timing of such cash flows cannot be determined, accretion of the fair value discount for nonperforming loans will be recognized using the cost recovery method of accounting. Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the years ended December 31, 2019, and 2018 respectively: ($ in Thousands) Year Ended December 31, 2019 Year Ended December 31, 2018 Changes in Accretable Yield Balance at beginning of period $ 1,482 $ — Purchases — 4,853 Accretion (940) (4,954) Net reclassification from non-accretable yield 23 1,605 Other (a) — (22) Balance at end of period $ 568 $ 1,482 (a) Primarily includes charge offs which are accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For loans acquired, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. The Corporation's Huntington branch acquisition included no purchased credit-impaired loans. At December 31, 2019, the Corporation had a total of approximately $12 million in net unaccreted purchase discount, of which approximately $12 million was related to performing loans and less than $1 million was related to the Corporation's purchased credit-impaired loans. At December 31, 2018, the Corporation had a total of approximately $20 million in net unaccreted purchase discount, of which approximately $18 million was related to performing loans and approximately $2 million was related to the Corporation's purchased credit-impaired loans. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is not amortized but is instead subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 1 for the Corporation’s accounting policy for goodwill and other intangible assets. The Corporation conducted its most recent annual impairment testing in May 2019, utilizing a qualitative assessment. Factors that management considered in this assessment included macroeconomic conditions, industry and market considerations, overall financial performance of the Corporation and each reporting unit (both current and projected), changes in management strategy, and changes in the composition or carrying amount of net assets. In addition, management considered the changes in both the Corporation’s common stock price and in the overall bank common stock index (based on the S&P 400 Regional Bank Sub-Industry Index), as well as the Corporation’s earnings per common share trend over the past year. Based on these assessments, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There were no events since the May 2019 impairment testing that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2019, 2018, or 2017. The Corporation had goodwill of $1.2 billion at both December 31, 2019 and 2018. Goodwill increased $7 million in 2019, due to the Huntington branch acquisition. During 2018, goodwill increased $175 million related to the Bank Mutual acquisition, $10 million related to the acquisition of Diversified, and $7 million related to the acquisition of Anderson. See Note 2 for additional information on the Corporation's acquisitions. Other Intangible Assets The Corporation has other intangible assets that are amortized, consisting of CDIs, other intangibles (primarily related to customer relationships acquired in connection with the Corporation’s insurance agency acquisitions), and MSRs. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows: ($ in Thousands) 2019 2018 2017 Core deposit intangibles Gross carrying amount $ 80,730 $ 58,100 $ 4,385 Accumulated amortization (12,456) (5,326) (4,385) Net book value $ 68,274 $ 52,774 $ — Additions during the period $ 22,630 $ 58,100 $ — Amortization during the year $ 7,130 $ 5,326 $ 112 Other intangibles Gross carrying amount $ 44,887 $ 44,931 $ 34,572 Reductions due to sale (217) (43) — Accumulated amortization (24,643) (21,825) (18,992) Net book value $ 20,027 $ 23,062 $ 15,580 Additions during the period $ — $ 10,359 $ 2,162 Amortization during the year $ 2,818 $ 2,833 $ 1,847 Mortgage Servicing Rights The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. MSRs are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. See Note 1 for the Corporation’s accounting policy for MSRs. See Note 16 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 18 which further discusses fair value measurement relative to the MSRs asset. A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance is as follows: ($ in Thousands) 2019 2018 2017 Mortgage servicing rights Mortgage servicing rights at beginning of year $ 68,433 $ 59,168 $ 62,085 Additions from acquisition — 8,136 — Additions 11,606 10,722 7,167 Amortization (12,432) (9,594) (10,084) Mortgage servicing rights at end of year $ 67,607 $ 68,433 $ 59,168 Valuation allowance at beginning of year (239) (784) (609) (Additions) recoveries, net (63) 545 (175) Valuation allowance at end of year (302) (239) (784) Mortgage servicing rights, net $ 67,306 $ 68,193 $ 58,384 Fair value of mortgage servicing rights $ 72,532 $ 81,012 $ 64,387 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 8,484,977 $ 8,600,983 $ 7,646,846 Mortgage servicing rights, net to servicing portfolio 0.79 % 0.79 % 0.76 % Mortgage servicing rights expense (a) $ 12,494 $ 9,049 $ 10,259 (a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income. The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2019. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets: ($ in Thousands) Core Deposit Intangibles Other Intangibles Mortgage Servicing Rights Year ending December 31, 2020 $ 8,073 $ 2,681 $ 10,628 2021 8,073 2,656 11,481 2022 8,073 2,633 9,576 2023 8,073 2,614 7,967 2024 8,073 2,594 6,621 Beyond 2024 27,909 6,850 21,336 Total Estimated Amortization Expense $ 68,274 $ 20,027 $ 67,607 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment See Note 1 for the Corporation’s accounting policy for premises and equipment. A summary of premises and equipment at December 31 is as follows: 2019 2018 ($ in Thousands) Estimated Cost Accumulated Net Book Net Book Land — $ 69,649 $ — $ 69,649 $ 67,737 Land improvements 3 – 15 years 17,868 8,513 9,355 7,212 Buildings and improvements 5 – 39 years 394,191 163,833 230,358 212,536 Computers 3 – 5 years 47,291 34,049 13,242 12,392 Furniture, fixtures and other equipment 3 – 15 years 176,023 122,681 53,342 49,891 Operating leases — 53,982 8,602 $ 45,381 $ — Leasehold improvements 3 – 15 years 36,842 22,884 13,958 13,457 Total premises and equipment $ 795,846 $ 360,562 $ 435,284 $ 363,225 Depreciation and amortization of premises and equipment totaled $34 million for both 2019 and 2018, and totaled $32 million in 2017. On January 1, 2019, the Corporation adopted ASU 2016-02 using a modified retrospective approach which required operating leases to be capitalized on the consolidated balance sheets. This resulted in a right-of-use asset of $45 million at December 31, 2019 compared to zero at December 31, 2018 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Corporation has operating leases for retail and corporate offices, land, and equipment. The Corporation also has a finance lease for land. These leases have original terms of 1 year or longer with remaining maturities up to 43 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any optional periods that the Corporation is reasonably likely to extend have been included in the capitalization. The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered. Operating and finance lease costs and cash flows resulting from these leases are presented below: ($ in Thousands) Twelve Months Ended December 31, 2019 Operating Lease Costs $ 11,006 Finance Lease Costs 36 Operating Lease Cash Flows 11,305 Finance Lease Cash Flows 35 The lease classifications on the consolidated balance sheets were as follows: December 31, 2019 ($ in Thousands) Amount Consolidated Balance Sheets Category Operating lease right-of-use asset $ 45,381 Premises and equipment Finance lease right-of-use asset 2,188 Other assets Operating lease liability 49,292 Accrued expenses and other liabilities Finance lease liability 2,209 Other long-term funding The lease payment obligations, weighted-average remaining lease term, and weighted-average discount rate were as follows: December 31, 2019 ($ in Thousands) Lease payments Weighted-average lease term (in years) Weighted-average discount rate Operating leases Equipment $ 46 0.83 2.72 % Retail and corporate offices 48,940 6.49 3.34 % Land 6,594 9.57 3.21 % Total operating leases $ 55,580 6.83 3.32 % Finance leases Land $ 4,827 39.67 3.99 % Total finance leases $ 4,827 39.67 3.99 % Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows: ($ in Thousands) Operating Leases Finance Leases Total Leases Twelve Months Ending December 31, 2020 $ 10,662 $ 85 $ 10,747 2021 10,136 85 10,221 2022 7,854 85 7,939 2023 5,625 85 5,710 2024 4,988 88 5,076 Beyond 2024 16,316 4,398 20,714 Total lease payments $ 55,580 $ 4,827 $ 60,407 Less: interest 6,288 2,617 8,905 Present value of lease payments $ 49,292 $ 2,209 $ 51,501 As of December 31, 2019, additional operating leases, primarily retail and corporate offices, that had not yet commenced at December 31, 2019 total $16 million. In addition, finance leases that had not yet commenced at December 31, 2019 total $2 million. These leases will commence between January 2020 and July 2023 with lease terms of 3 years to 6 years. The Corporation conducts a portion of its business through certain facilities and equipment under noncancelable operating leases. The Corporation also leases a subdivision of some of its facilities and receives rental income from such lease agreements. The approximate minimum annual rental payments and rental receipts under noncancelable agreements and leases with remaining terms in excess of one year are as follows: ($ in Thousands) Payments Receipts 2020 $ 9,876 $ 3,189 2021 9,976 2,903 2022 7,822 2,127 2023 5,977 1,723 2024 5,315 1,583 Thereafter 21,393 8,081 Total $ 60,359 $ 19,606 Total rental expense under leases, net of lease income, totaled $5 million in 2019, $10 million in 2018, and $6 million in 2017, respectively. Practical Expedients The Corporation elected several practical expedients made available by the FASB. Due to materiality, the Corporation elected not to restate comparative periods upon adoption of the new guidance. In addition, the Corporation elected the package of practical expedients whereby the Corporation did not reassess (i) whether existing contracts are, or contain, leases and (ii) lease classification for existing leases. Lastly, the Corporation elected not to separate lease and non-lease components in determining the consideration in the lease agreement. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits The distribution of deposits at December 31 is as follows: ($ in Thousands) 2019 2018 Noninterest-bearing demand $ 5,450,709 $ 5,698,530 Savings 2,735,036 2,012,841 Interest-bearing demand 5,329,717 5,336,952 Money market 7,640,798 9,033,669 Brokered CDs 5,964 192,234 Other time 2,616,839 2,623,167 Total deposits $ 23,779,064 $ 24,897,393 Time deposits of $100,000 or more were $1.3 billion and $1.4 billion for December 31, 2019 and 2018, respectively. Time deposits of $250,000 or more were $861 million and $924 million at December 31, 2019 and 2018, respectively. Aggregate annual maturities of all time deposits at December 31, 2019, are as follows: Maturities During Year Ending December 31, ($ in Thousands) 2020 $ 1,947,004 2021 477,780 2022 97,141 2023 55,028 2024 45,510 Thereafter 340 Total $ 2,622,803 |
Short and Long-Term Funding
Short and Long-Term Funding | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Short- and Long-Term Funding The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), long-term funding (funding with original contractual maturities greater than one year), and FHLB advances (funding based on original contractual maturities): ($ in Thousands) December 31, 2019 December 31, 2018 Short-Term Funding Federal funds purchased $ 362,000 $ 19,710 Securities sold under agreements to repurchase 71,097 91,941 Federal funds purchased and securities sold under agreements to repurchase 433,097 111,651 Commercial paper 32,016 45,423 Total short-term funding $ 465,113 $ 157,074 Long-Term Funding Corporation senior notes, at par, due 2019 $ — $ 250,000 Bank senior notes, at par, due 2021 300,000 300,000 Corporation subordinated notes, at par, due 2025 250,000 250,000 Finance leases 2,209 — Capitalized costs (2,866) (4,389) Total long-term funding 549,343 795,611 Total short and long-term funding, excluding FHLB advances $ 1,014,456 $ 952,685 FHLB Advances Short-term FHLB advances $ 520,000 $ 900,000 Long-term FHLB advances 2,660,967 2,674,371 Total FHLB advances $ 3,180,967 $ 3,574,371 Total short and long-term funding $ 4,195,422 $ 4,527,056 Securities Sold Under Agreement to Repurchase The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). See Note 15 for additional disclosures on balance sheet offsetting. The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. As of December 31, 2019, the Corporation pledged agency mortgage-related securities with a fair value of $153 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities. The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of December 31, 2019 and December 31, 2018 are presented in the following table: Remaining Contractual Maturity of the Agreements ($ in Thousands) Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total December 31, 2019 Repurchase agreements Agency mortgage-related securities $ 71,097 $ — $ — $ — $ 71,097 Total $ 71,097 $ — $ — $ — $ 71,097 December 31, 2018 Repurchase agreements Agency mortgage-related securities $ 91,941 $ — $ — $ — $ 91,941 Total $ 91,941 $ — $ — $ — $ 91,941 Long-Term Funding Senior Notes In August 2018, the Bank issued $300 million of senior notes, due August 2021, and callable July 2021. The senior notes have a fixed coupon interest rate of 3.50% and were issued at a discount. In November 2014, the Corporation issued $250 million of senior notes, due November 2019, and callable October 2019. The senior notes had a fixed coupon interest rate of 2.75% and were issued at a discount. On October 15, 2019, these notes were redeemed in full. Subordinated Notes In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount. Finance Leases The Corporation entered into a 40-year land lease, maturing August 2059, with an option to purchase in August 2022. The finance lease has a fixed interest rate of 3.99%. FHLB Advances At December 31, 2019, the Corporation had $3.2 billion of FHLB advances, down $393 million from December 31, 2018. As of December 31, 2019, the Corporation had $1.5 billion of putable FHLB advances with a one-time option where the FHLB can call the advance prior to the contractual maturity. The contractual weighted average life to the put date of these advances was 0.27 years, with each of the options set to expire in 2020. The weighted average life to contractual maturity on these advances was 5.66 years, with those dates ranging from 2023 through 2028. As of December 31, 2019, due to the lower rate environment, it is probable that none of these advances will be called by the FHLB and will extend to their final maturities. Under agreements with the Federal Home Loan Bank of Chicago, FHLB advances (short-term and long-term) are secured by qualifying mortgages of the subsidiary bank (such as residential mortgage, residential mortgage loans held for sale, home equity, and commercial real estate). At December 31, 2019, the Corporation had $9.6 billion of total collateral capacity, primarily supported by residential mortgage and home equity loans. The original contractual maturity or next put date of the Corporation's FHLB advances as of December 31, 2019 and December 31, 2018 are presented in the following table: December 31, 2019 December 31, 2018 ($ in Thousands) Amount Weighted Average Contractual Coupon Rate Amount Weighted Average Contractual Coupon Rate Maturity or put date 1 year or less $ 2,055,056 2.19 % $ 2,262,584 2.06 % After 1 but within 2 14,099 2.95 % 1,285,039 2.39 % After 2 but within 3 504,154 2.12 % 14,393 2.98 % After 3 years 607,657 2.29 % 12,354 4.55 % FHLB advances and overall rate $ 3,180,967 2.20 % $ 3,574,371 2.19 % The table below summarizes the maturities of the Corporation’s long-term funding, including long-term FHLB advances, at December 31, 2019: Year ($ in Thousands) 2020 $ 85,095 2021 312,700 2022 504,193 2023 202,572 2024 250,673 Thereafter 1,855,075 Total long-term funding $ 3,210,310 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Equity: In June 2015, the Corporation issued 2.6 million depositary shares, each representing a 1/40th interest in a share of the Corporation’s 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference $1,000 per share. Dividends on the Series C Preferred Stock are payable quarterly in arrears only when, as and if declared by the Board of Directors at a rate per annum equal to 6.125%. Shares of the Series C Preferred Stock have priority over the Corporation’s common stock with regard to the payment of dividends and distributions upon liquidation, dissolution or winding up. As such, the Corporation may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Series C Preferred Stock have been declared for that period, and sufficient funds have been set aside to make payment. The Series C Preferred Stock may be redeemed by the Corporation at its option (i) either in whole or in part, from time to time, on any dividend payment date on or after the dividend payment date occurring on June 15, 2020, or (ii) in whole but not in part, at any time within 90 days following certain regulatory capital treatment events, in each case at a redemption price of $1,000 per share (equivalent to $25 per depositary share), plus any applicable dividends. Except in certain limited circumstances, the Series C Preferred Stock does not have any voting rights. On August 28, 2015, the Board of Directors authorized the repurchase of up to $10 million of depositary shares of the Corporation's Series C Preferred Stock. As of December 31, 2019, $10 million remained available under this repurchase authorization. In September 2016, the Corporation issued 4.0 million depositary shares, each representing a 1/40th interest in a share of the Corporation’s 5.375% Non-Cumulative Perpetual Preferred Stock, Series D, liquidation preference $1,000 per share. Dividends on the Series D Preferred Stock are payable quarterly in arrears only when, as and if declared by the Board of Directors at a rate per annum equal to 5.375%. Shares of the Series D Preferred Stock have priority over the Corporation’s common stock with regard to the payment of dividends and distributions upon liquidation, dissolution or winding up. As such, the Corporation may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Series D Preferred Stock have been declared for that period, and sufficient funds have been set aside to make payment. The Series D Preferred Stock may be redeemed by the Corporation at its option (i) either in whole or in part, from time to time, on any dividend payment date on or after the dividend payment date occurring on September 15, 2021, or (ii) in whole but not in part, at any time within 90 days following certain regulatory capital treatment events, in each case at a redemption price of $1,000 per share (equivalent to $25 per depositary share), plus any applicable dividends. Except in certain limited circumstances, the Series D Preferred Stock does not have any voting rights. On July 25, 2017, the Board of Directors authorized the repurchase of up to $15 million of depositary shares of the Corporation's Series D Preferred Stock. As of December 31, 2019, $14 million remained available under this repurchase authorization. In September 2018, the Corporation issued 4.0 million depositary shares, each representing a 1/40th interest in a share of the Corporation’s 5.875% Non-Cumulative Perpetual Preferred Stock, Series E, liquidation preference $1,000 per share. Dividends on the Series E Preferred Stock are payable quarterly in arrears only when, as and if declared by the Board of Directors at a rate per annum equal to 5.875%. Shares of the Series E Preferred Stock have priority over the Corporation’s common stock with regard to the payment of dividends and distributions upon liquidation, dissolution or winding up. As such, the Corporation may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Series E Preferred Stock have been declared for that period, and sufficient funds have been set aside to make payment. The Series E Preferred Stock may be redeemed by the Corporation at its option (i) either in whole or in part, from time to time, on any dividend payment date on or after the dividend payment date occurring on December 15, 2023, or (ii) in whole but not in part, at any time within 90 days following certain regulatory capital treatment events, in each case at a redemption price of $1,000 per share (equivalent to $25 per depositary share), plus any applicable dividends. Except in certain limited circumstances, the Series E Preferred Stock does not have any voting rights. Subsidiary Equity: At December 31, 2019, subsidiary equity equaled $3.9 billion. See Note 19 for additional information on regulatory requirements for the Bank. Common Stock Repurchas es: In 2019, the Board of Directors approved additional authorizations for the repurchase of up to $250 million of the Corporation’s common stock. During the year, the Corporation repurchased 8.2 million shares for $177 million (or an average cost per common share of $21.62). During 2018, the Board of Directors authorized the repurchase of up to $300 million of the Corporation’s common stock. Under 2018 authorizations, and the remaining $51 million available under the 2015 authorization, the Corporation repurchased 9.5 million shares for $240 million (or an average cost per common share of $25.29). The Corporation also repurchased shares in satisfaction of minimum tax withholding obligations in connection with settlements of equity compensation totaling approximately $9 million (397,969 shares at an average cost per common share of $21.59) during 2019 compared to approximately $7 million (292,070 shares at an average cost per common share of $24.47) during 2018. As of December 31, 2019, approximately $184 million remained available to repurchase shares of common stock under previously approved Board of Director authorizations. The repurchase of shares will be based on market and investment opportunities, capital levels, growth prospects, and any necessary regulatory approvals and other regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities. Other Comprehensive Income (Loss): See |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Plan In February 2017, the Board of Directors, with subsequent approval of the Corporation’s shareholders, approved the adoption of the 2017 Incentive Compensation Plan. All remaining shares available for grant under the 2013 Incentive Compensation Plan were rolled into the 2017 Plan. As of December 31, 2019, approximately 7.6 million shares remained available for grant under the 2017 Plan. Under the 2017 Plan, options are generally exercisable up to ten years from the date of grant, have an exercise price that is equal to the closing price of the Corporation’s stock on the grant date, and vest ratably over four years. The Corporation also issues restricted stock awards under the 2017 Plan. The shares of restricted stock are restricted as to transfer, but are not restricted as to dividend payment or voting rights. Restricted stock units receive dividend equivalents but do not have voting rights. The transfer restrictions lapse over three years or four years, depending upon whether the awards are performance-based or service-based. Performance-based awards are based on earnings per share performance goals, relative total shareholder return, and continued employment or meeting the requirements for retirement and service-based awards are contingent upon continued employment or meeting the requirements for retirement. Performance-based restricted stock awards vest over a performance period of three years and service-based restricted stock awards vest ratably over four years. The 2017 Plan provides that restricted stock awards and stock options will immediately become fully vested upon retirement from the Corporation of retirement eligible colleagues. See Note 1 for the Corporation’s accounting policy for stock based compensation. Accounting for Stock-Based Compensation The fair value of stock options granted is estimated on the date of grant using a Black-Scholes option pricing model, while the fair value of restricted stock awards is their fair market value on the date of grant. The fair values of stock options and restricted stock awards are amortized as compensation expense on a straight-line basis over the vesting period of the grants. For retirement eligible colleagues, expenses related to stock options and restricted stock awards are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense on the consolidated statements of income. Performance awards are based on performance goals of earnings per share and total shareholder return with vesting ranging from a minimum of 0% to a maximum of 150% of the target award. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date. Assumptions are used in estimating the fair value of stock options granted. The weighted average expected life of the stock option represents the period of time that stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the implied volatility of the Corporation’s stock. The following assumptions were used in estimating the fair value for options granted in 2019, 2018, and 2017: 2019 2018 2017 Dividend yield 3.30 % 2.50 % 2.00 % Risk-free interest rate 2.60 % 2.60 % 2.00 % Weighted average expected volatility 24.00 % 22.00 % 25.00 % Weighted average expected life 5.75 years 5.75 years 5.5 years Weighted average per share fair value of options $4.00 $4.47 $5.30 A summary of the Corporation’s stock option activity for the year ended December 31, 2019 is presented below: Stock Options Shares (a) Weighted Average Weighted Average Aggregate Outstanding at December 31, 2018 5,281 $ 19.09 6.18 years $ 12,392 Granted 1,050 22.77 Exercised (674) 15.75 Forfeited or expired (114) 22.42 Outstanding at December 31, 2019 5,543 $ 20.13 6.25 years $ 16,043 Options exercisable at December 31, 2019 3,360 $ 18.22 4.95 years $ 14,980 (a) In thousands Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. For the years ended December 31, 2019, 2018, and 2017 the intrinsic value of stock options exercised was $4 million, $10 million, and $13 million, respectively. The total fair value of stock options that vested was $3 million for the year ended December 31, 2019 and $4 million for both of the years ended December 31, 2018 and 2017. For the years ended December 31, 2019, 2018, and 2017, the Corporation recognized compensation expense of $4 million for each of the three years, for the vesting of stock options. Included in compensation expense for 2019 was $1 million of expense for the accelerated vesting of stock options granted to retirement eligible colleagues. At December 31, 2019, the Corporation had $4 million of unrecognized compensation expense related to stock options that is expected to be recognized over the remaining requisite service periods that extend predominantly through the first quarter 2023. The following table summarizes information about the Corporation’s restricted stock activity for the year ended December 31, 2019: Restricted Stock Shares (a) Weighted Average Outstanding at December 31, 2018 1,993 $ 21.92 Granted 1,180 22.20 Vested (710) 20.61 Forfeited (69) 23.84 Outstanding at December 31, 2019 2,393 $ 22.39 (a) In thousands The Corporation amortizes the expense related to restricted stock awards as compensation expense over the vesting period specified in the grant. Expense for restricted stock awards of approximately $21 million was recorded for year ended December 31, 2019, $13 million for the year ended December 31, 2018 and $18 million for the year ended December 31, 2017. Included in compensation expense for 2019 was approximately $4 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $20 million of unrecognized compensation costs related to restricted stock awards at December 31, 2019, that is expected to be recognized over the remaining requisite service periods that extend predominantly through first quarter 2023. The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock awards. As described in Note 10, of the notes to consolidated financial statements, the Board of Directors has authorized management to repurchase shares of the Corporation’s common stock each quarter in the market, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares will be based on market and investment opportunities, capital levels, growth prospects, and the receipt of any necessary regulatory approvals. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Retirement Plans | Retirement Plans The Corporation has a noncontributory defined benefit retirement plan, the RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans. Bank Mutual was acquired on February 1, 2018. The Bank Mutual Pension Plan was merged into the RAP on December 31, 2018. Bank Mutual's Postretirement Plan was merged into the Corporation's Postretirement Plan during the first quarter of 2018. The reported figures in 2018 for both the RAP and Postretirement Plan only include 11 months of Bank Mutual expense due to the timing of the Bank Mutual acquisition. The Huntington branch acquisition closed on June 14, 2019, and the employees gained as a result of the transaction became eligible to participate in the RAP on the same date, with their vesting service credit based on their prior hours of service with Huntington. See Note 2 for additional information on the Huntington branch acquisition. The funded status and amounts recognized in the 2019 and 2018 consolidated balance sheets, as measured on December 31, 2019 and 2018, respectively, for the RAP and Postretirement Plan were as follows: RAP Postretirement RAP Bank Mutual Pension Postretirement ($ in Thousands) 2019 2019 2018 2018 2018 Change in Fair Value of Plan Assets Fair value of plan assets at beginning of year $ 390,564 $ — $ 331,609 N/A $ — Fair value of Bank Mutual plan assets at February 1, 2018 N/A — N/A 59,445 — Actual return on plan assets 67,377 — (14,609) (1,665) — Employer contributions — 270 4,340 37,537 292 Gross benefits paid (15,907) (270) (10,582) (15,513) (292) Bank Mutual plan assets transferred at December 31, 2018 N/A — 79,805 (79,805) — Fair value of plan assets at end of year (a) $ 442,034 $ — $ 390,564 $ — $ — Change in Benefit Obligation Net benefit obligation at beginning of year $ 233,658 $ 2,523 $ 186,423 N/A $ 2,478 Net Bank Mutual benefit obligation at February 1, 2018 N/A — N/A 66,364 576 Service cost 7,263 — 7,540 — — Interest cost 9,752 104 6,727 2,398 108 Actuarial (gain) loss 25,810 188 (8,000) (1,701) (347) Gross benefits paid (15,907) (270) (10,582) (2,644) (292) Lump sums paid — — — (12,868) — Bank Mutual benefit obligations transferred at December 31, 2018 N/A — $ 51,549 (51,549) — Net benefit obligation at end of year (a) $ 260,576 $ 2,545 $ 233,658 $ — $ 2,523 Funded (unfunded) status $ 181,458 $ (2,545) $ 156,906 $ — $ (2,523) Noncurrent assets $ 181,458 $ — $ 156,906 $ — $ — Current liabilities — (214) — — (219) Noncurrent liabilities — (2,330) — — (2,304) Asset (Liability) Recognized on the Consolidated Balance Sheets $ 181,458 $ (2,545) $ 156,906 $ — $ (2,523) (a) The fair value of the plan assets represented 170% and 167% of the net benefit obligation of the pension plan at December 31, 2019 and 2018, respectively. Amounts recognized in accumulated other comprehensive (income) loss, net of tax, as of December 31, 2019 and 2018 follow: RAP Postretirement RAP Postretirement ($ in Thousands) 2019 2019 2018 2018 Prior service cost $ (249) $ (533) $ (303) $ (588) Net actuarial loss 37,075 126 50,238 (17) Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss $ 36,827 $ (406) $ 49,935 $ (605) Other changes in plan assets and benefit obligations recognized in OCI, net of tax, in 2019 and 2018 were as follows: RAP Postretirement RAP Postretirement ($ in Thousands) 2019 2019 2018 2018 Net actuarial gain (loss) $ 17,235 $ (188) $ (28,959) $ 347 Amortization of prior service cost (73) (75) (73) (75) Amortization of actuarial loss (gain) 480 (4) 2,195 8 Adjustment for adoption of ASU 2018-02 — — (5,235) — Income tax (expense) benefit (4,532) 67 6,838 (71) Total Recognized in OCI $ 13,109 $ (200) $ (25,234) $ 209 The components of net pension cost for the RAP for 2019, 2018, and 2017 were as follows: ($ in Thousands) 2019 2018 2017 Service cost $ 7,263 $ 7,540 $ 6,955 Interest cost 9,752 9,125 7,121 Expected return on plan assets (24,332) (23,195) (19,646) Amortization of prior service cost (73) (73) (73) Amortization of actuarial loss (gain) 480 2,195 2,278 Recognized settlement loss (gain) — 809 — Total net periodic pension cost $ (6,910) $ (3,600) $ (3,365) The components of net periodic benefit cost for the Postretirement Plan for 2019, 2018, and 2017 were as follows: ($ in Thousands) 2019 2018 2017 Interest cost $ 104 $ 108 $ 101 Amortization of prior service cost (75) (75) (75) Amortization of actuarial loss (gain) (4) 8 4 Total net periodic benefit cost $ 25 $ 41 $ 30 The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item other of noninterest expense on the consolidated statements of income. The service cost components are included in personnel on the consolidated statements of income. As of December 31, 2019, the estimated actuarial losses and prior service cost that will be amortized during 2020 from accumulated other comprehensive income into net periodic pension cost for the RAP includes expense of $3 million for actuarial losses and income of approximately $75,000 for the prior service cost. For the Postretirement Plan, the estimated actuarial losses and prior service cost that will be amortized during 2020 from accumulated other comprehensive income into net periodic benefit cost includes income of approximately $75,000 for the prior service cost while no actuarial gains or losses are expected. RAP Postretirement RAP Postretirement 2019 2019 2018 2018 Weighted average assumptions used to determine benefit obligations Discount rate 3.20 % 3.20 % 4.30 % 4.30 % Rate of increase in compensation levels 2.00 % N/A 3.00 % N/A Weighted average assumptions used to determine net periodic benefit costs Discount rate (a) 4.30 % 4.30 % 3.77 % 3.77 % Rate of increase in compensation levels 3.00 % N/A 3.00 % N/A Expected long-term rate of return on plan assets (b) 6.00 % N/A 5.93 % N/A (a) Weighted average of the 2018 fiscal year discount rate assumption for the RAP was 3.70% and the Bank Mutual Pension Plan was 4.00% (b) Weighted average of the 2018 fiscal year expected return on asset assumption for the RAP was 6.00% and the Bank Mutual Pension Plan was 5.50% The expected long-term (more than 20 years) rate of return was estimated using market benchmarks for equities and bonds applied to the RAP’s anticipated asset allocations. The expected return on equities was computed utilizing a valuation framework, which projected future returns based on current equity valuations rather than historical returns. The actual rates of return for the RAP assets were 18.29% and (3.69)% for 2019 and 2018, respectively. The RAP’s investments are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risks associated with certain investments and the level of uncertainty related to changes in the value of the investments, it is at least reasonably possible that changes in risks in the near term could materially affect the amounts reported. The investment objective for the RAP is to maximize total return with a tolerance for average risk. The RAP has a diversified portfolio designed to provide liquidity, current income, and growth of income and principal, with anticipated asset allocation ranges of: equity securities 50 to 70%, fixed-income securities 30 to 50%, other cash equivalents 0 to 10%, and alternative securities 0 to 15%. Based on changes in economic and market conditions, the Corporation could be outside of the allocation ranges for brief periods of time. The asset allocation for the RAP as of the December 31, 2019 and 2018 measurement dates, respectively, by asset category were as follows: Asset Category 2019 2018 Equity securities 51 % 49 % Fixed-income securities 33 % 34 % Group annuity contracts 11 % 12 % Alternative securities 3 % 3 % Other 2 % 2 % Total 100 % 100 % The RAP assets include cash equivalents, such as money market accounts, mutual funds, common / collective trust funds (which include investments in equity and bond securities), and a group annuity contract. Money market accounts are stated at cost plus accrued interest, mutual funds are valued at quoted market prices, investments in common / collective trust funds are valued at the amount at which units in the funds can be withdrawn, and the group annuity contract is valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations and considering the credit worthiness of the issuer. The group annuity contract was obtained as part of the Bank Mutual Pension Plan that was acquired on February 1, 2018 and merged into the RAP on December 31, 2018. Based on these inputs, the following table summarizes the fair value of the RAP’s investments as of December 31, 2019 and 2018: Fair Value Measurements Using ($ in Thousands) December 31, 2019 Level 1 Level 2 Level 3 RAP Investments Money market account $ 8,903 $ 8,903 $ — $ — Common /collective trust funds 155,964 155,964 — — Mutual funds 227,112 227,112 — — Group annuity contracts 50,055 — — 50,055 Total RAP Investments $ 442,034 $ 391,979 $ — $ 50,055 Fair Value Measurements Using ($ in Thousands) December 31, 2018 Level 1 Level 2 Level 3 RAP Investments Money market account $ 7,159 $ 7,159 $ — $ — Common /collective trust funds 138,020 138,020 — — Mutual funds 198,120 198,120 — — Group annuity contracts 47,265 — — 47,265 Total RAP Investments $ 390,564 $ 343,299 $ — $ 47,265 The following presents a summary of the changes in the fair value of the RAP's Level 3 asset during the periods indicated. As noted above, the Corporation's Level 3 asset consists entirely of a group annuity contract issued by a life insurance company. Fair Value Reconciliation of Level 3 RAP Investments 2019 2018 (a) Fair value of group annuity contract at beginning of period $ 47,265 $ 49,191 Return on plan assets 5,495 565 Benefits paid (2,704) (2,491) Fair value of group annuity contract at end of period $ 50,055 $ 47,265 (a) Period begins on February 1, the date the Corporation acquired the group annuity contract from the Bank Mutual acquisition. The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. The Corporation did not make any contributions to the RAP during 2019. The Corporation made contributions of $38 million to the Bank Mutual Pension Plan and $4 million to the RAP during 2018, with the plans merging on December 31, 2018. The projected benefit payments were calculated using the same assumptions as those used to calculate the benefit obligations listed above. The projected benefit payments for the RAP and Postretirement Plan at December 31, 2019, reflecting expected future services, were as follows: ($ in Thousands) RAP Postretirement Plan Estimated future benefit payments 2020 $ 19,659 $ 218 2021 19,755 213 2022 20,729 208 2023 20,392 202 2024 20,710 196 2025-2029 91,264 867 The health care trend rate is an assumption as to how much the Postretirement Plan’s medical costs will change each year in the future. There are no remaining participants under age 65 in the Postretirement Plan. The actual change in 2019 health care premium rates for post-65 coverage was an increase of 2.00%. The health care trend rate assumption for post-65 coverage is an increase of 5.75% in 2020 with the rate of increase decreasing 0.25% in each succeeding year, to an ultimate rate of 5.00% for 2023 and future years. A one percentage point change in the assumed health care cost trend rate would have the following effect: 2019 2018 ($ in Thousands) 100 bp Increase 100 bp Decrease 100 bp Increase 100 bp Decrease Effect on total of service and interest cost $ 7 $ (6) $ 7 $ (6) Effect on postretirement benefit obligation $ 170 $ (148) $ 164 $ (143) The Corporation also has a 401(k) and Employee Stock Ownership Plan (the “401(k) plan”). The Corporation’s contribution is determined by the Compensation and Benefits Committee of the Board of Directors. Total expenses related to contributions to the 401(k) plan were $16 million, $16 million, and $14 million in 2019, 2018, and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The current and deferred amounts of income tax expense (benefit) were as follows: Years Ended December 31, ($ in Thousands) 2019 2018 2017 Current Federal $ 50,560 $ 20,246 $ 76,525 State 15,327 12,593 11,576 Total current 65,887 32,839 88,101 Deferred Federal 14,094 34,941 19,755 State (261) 12,006 1,647 Total deferred 13,833 46,947 21,402 Total income tax expense $ 79,720 $ 79,786 $ 109,503 Temporary differences between the amounts reported on the financial statements and the tax bases of assets and liabilities resulted in deferred taxes. Deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows: ($ in Thousands) 2019 2018 Deferred tax assets Allowance for loan losses $ 48,790 $ 61,143 Allowance for other losses 7,236 8,304 Accrued liabilities 4,005 3,736 Deferred compensation 28,018 24,754 Benefit of tax loss and credit carryforwards 13,444 10,126 Nonaccrual interest 1,299 1,666 Net unrealized losses on available-for-sale securities — 25,731 Net unrealized losses on pension and postretirement benefits 12,174 16,640 Other 3,495 1,916 Total deferred tax assets 118,461 154,015 Valuation allowance for deferred tax assets (251) (251) Total deferred tax assets after valuation allowance $ 118,211 $ 153,764 Deferred tax liabilities Prepaid expenses $ 62,227 $ 61,250 Goodwill 21,099 20,178 Mortgage banking activities 17,418 17,428 Deferred loan fee income 12,190 11,892 State deferred taxes 722 518 Lease financing 199 410 Bank premises and equipment 18,348 18,655 Purchase accounting 13,738 12,414 Deferred gains from equity securities and other investments 4,810 — Net unrealized gains on available-for-sale securities 1,139 — Other 1,156 684 Total deferred tax liabilities $ 153,045 $ 143,429 Net deferred tax assets (liabilities) $ (34,836) $ 10,335 At December 31, 2019 and December 31, 2018, the valuation allowance for deferred tax assets of approximately $251,000 was related to the deferred tax benefit of specific federal tax loss carryforwards of $3 million from a 2017 acquisition. The changes in the valuation allowance related to net operating losses for 2019 and 2018 were as follows: ($ in Thousands) 2019 2018 Valuation allowance for deferred tax assets, beginning of year $ (251) $ (269) (Increase) decrease in current year — 18 Valuation allowance for deferred tax assets, end of year $ (251) $ (251) At December 31, 2019, the Corporation had state net operating loss carryforwards of $106 million (of which $49 million was acquired from various acquisitions) that will begin expiring in 2031. At December 31, 2019, the Corporation had state tax credit carryforwards of $5 million that will begin expiring in 2034. The effective income tax rate differs from the statutory federal tax rate. The major reasons for this difference were as follows: 2019 2018 2017 Federal income tax rate at statutory rate 21.0 % 21.0 % 35.0 % Increases (decreases) resulting from: Tax-exempt interest and dividends (3.3) % (2.6) % (4.1) % State income taxes (net of federal benefit) 3.5 % 3.7 % 2.9 % Bank owned life insurance (0.8) % (0.7) % (1.7) % Tax effect of tax credits and benefits, net of related expenses (0.9) % (0.7) % (0.7) % Tax reserve adjustments / settlements 0.2 % 1.5 % (1.2) % Net tax benefit from stock-based compensation (0.2) % (0.5) % (1.3) % Tax Act impact on deferred remeasurement — % — % 3.5 % Tax planning in response to the Tax Act — % (3.6) % — % FDIC premium 0.5 % 0.9 % — % Other (0.4) % 0.3 % (0.1) % Effective income tax rate 19.6 % 19.3 % 32.3 % Savings banks acquired by the Corporation in 1997 and 2004 qualified under provisions of the Internal Revenue Code that permitted them to deduct from taxable income an allowance for bad debts that differed from the provision for such losses charged to income for financial reporting purposes. Accordingly, no provision for income taxes has been made for $100 million of retained income at December 31, 2019. If income taxes had been provided, the deferred tax liability would have been approximately $25 million. Management does not expect this amount to become taxable in the future; therefore, no provision for income taxes has been made. The Corporation and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation’s federal income tax returns are open and subject to examination from the 2016 tax return year and forward. The years open to examination by state and local government authorities varies by jurisdiction. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: ($ in Millions) 2019 2018 Balance at beginning of year $ 2 $ 4 Subtractions for tax positions related to prior years — — Subtractions for settlements with tax authorities — (3) Additions for tax positions related to current year 1 1 Balance at end of year $ 3 $ 2 At December 31, 2019 and 2018, the total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate were $2 million and $1 million, respectively. The Corporation recognizes interest and penalties accrued related to unrecognized tax benefits in the income tax expense line on the consolidated statements of income. Interest and penalty benefits were negligible at December 31, 2019 and $1 million December 31, 2018. Accrued interest and penalties were negligible at both December 31, 2019 and December 31, 2018. Management does not anticipate significant adjustments to the total amount of unrecognized tax benefits within the next twelve months. |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation's known or expected cash receipts and its known or expected cash payments principally related to the Corporation's assets. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, contracts generally contain language outlining collateral pledging requirements for each counterparty. For non-centrally cleared derivatives, collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. Securities and cash are often pledged as collateral. The Corporation pledged $57 million of investment securities as collateral at December 31, 2019, and pledged $36 million of investment securities as collateral at December 31, 2018. Cash is often pledged as collateral for interest rate swaps and derivatives that are not centrally cleared. At December 31, 2019, the Corporation posted $14 million cash collateral compared to $1 million at December 31, 2018. Federal regulations require the Corporation to clear all LIBOR interest rate swaps through a clearing house, if possible. For derivatives cleared through central clearing houses the variation margin payments are legally characterized as daily settlements of the derivative rather than collateral. The Corporation's clearing agent for interest rate derivative contracts that are centrally cleared through the Chicago Mercantile Exchange (CME) and the London Clearing House (LCH) settles the variation margin daily. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Depending on the net position, the fair value is reported in other assets or accrued expenses and other liabilities on the consolidated balance sheets. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. See Note 18 for fair value information and disclosures and see Note 1 for the Corporation's accounting policy for derivative and hedging activities. Fair Value Hedges of Interest Rate Risk The Corporation is exposed to changes in the fair value of certain of its pools of prepayable fixed-rate assets due to changes in benchmark interest rates. The Corporation used interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involved the payment of fixed-rate amounts to a counterparty in exchange for the Corporation receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk were recognized in interest income. During the fourth quarter of 2019, the Corporation terminated the outstanding fair value hedges. Derivatives to Accommodate Customer Needs The Corporation also facilitates customer borrowing activity by entering into various derivative contracts which are designated as free standing derivative contracts. Free standing derivative products are entered into primarily for the benefit of commercial customers seeking to manage their exposures to interest rate risk, foreign currency, and commodity prices. These derivative contracts are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and, therefore, do not qualify for hedge accounting treatment. Such derivative contracts are carried at fair value in other assets and accrued expenses and other liabilities on the consolidated balance sheets with changes in the fair value recorded as a component of capital markets, net, and typically include interest rate-related instruments (swaps and caps), foreign currency exchange forwards, and commodity contracts. See Note 15 for additional information and disclosures on balance sheet offsetting. Interest rate-related instruments: The Corporation provides interest rate risk management services to commercial customers, primarily forward interest rate swaps and caps. The Corporation’s market risk from unfavorable movements in interest rates related to these derivative contracts is generally economically hedged by concurrently entering into offsetting derivative contracts. The offsetting derivative contracts have identical notional values, terms, and indices. Foreign currency exchange forwards: The Corporation provides foreign currency exchange services to customers, primarily forward contracts. The Corporation's customers enter into a foreign currency exchange forward with the Corporation as a means for them to mitigate exchange rate risk. The Corporation mitigates its risk by then entering into an offsetting foreign currency exchange derivative contract. Commodity contracts: Commodity contracts are entered into primarily for the benefit of commercial customers seeking to manage their exposure to fluctuating commodity prices. The Corporation mitigates its risk by then entering into an offsetting commodity derivative contract. Mortgage Derivatives Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net. Written and Purchased Options (Time Deposit) Historically, the Corporation had entered into written and purchased option derivative instruments to facilitate an equity linked time deposit product (the “Power CD”), which the Corporation ceased offering in September 2013. The Power CD was a time deposit that provided the purchaser a guaranteed return of principal at maturity plus a potential equity return (a written option), while the Corporation received a known stream of funds based on the equity return (a purchased option). The written and purchased options are mirror derivative instruments, which are carried at fair value on the consolidated balance sheets. The last Power CD matured in November 2019. The table below identifies the balance sheet category and fair values of the Corporation’s derivative instruments: December 31, 2019 December 31, 2018 Asset Liability Asset Liability ($ in Thousands) Notional Amount Fair Notional Amount Fair Notional Amount Fair Notional Amount Fair Designated as hedging instruments Interest rate-related instruments $ — $ — $ — $ — $ — $ — $ 500,000 $ 40 Not designated as hedging instruments Interest rate-related instruments 3,029,877 77,024 3,029,877 13,073 2,707,204 52,796 2,707,204 52,653 Foreign currency exchange forwards 272,636 4,226 264,653 4,048 117,879 721 69,153 675 Commodity contracts 255,089 20,528 255,165 19,624 331,727 35,426 315,861 34,340 Mortgage banking (a) 255,291 2,527 263,000 710 191,222 2,208 139,984 2,072 Time deposits — — — — 11,185 109 11,185 109 Total not designated as hedging instruments 104,305 37,455 91,260 89,849 Gross derivatives before netting $ 104,305 $ 37,455 $ 91,260 $ 89,889 Less: Legally enforceable master netting agreements 10,410 10,410 5,322 5,322 Less: Cash collateral pledged/received 1,408 11,365 27,593 63 Total derivative instruments, after netting (b) $ 92,487 $ 15,680 $ 58,345 $ 84,504 (a) Mortgage derivative assets include interest rate lock commitments and mortgage derivative liabilities include forward commitments. (b) The fair values of derivative assets are included in other assets, while the fair values of derivative liabilities are included in accrued expenses and other liabilities, on the consolidated balance sheets. The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustment for fair value hedges: Line Item on the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (b) ($ in Thousands) December 31, 2019 Loans and investment securities available for sale (a) $ 505,371 $ 5,371 Total $ 505,371 $ 5,371 (a) These amounts include the amortized cost basis of closed portfolios used to designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $893 million; the positive cumulative basis adjustments associated with these hedging relationships was approximately $5 million; and the amounts of the designated hedged items were $500 million which were terminated during the fourth quarter of 2019. (b) The balance includes $5 million of hedging adjustment on discontinued hedging relationships. The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income during the twelve months ended December 31, 2019: Location and Amount of Gain or (Loss) Recognized on Consolidated Statements of Income in Fair Value and Cash Flow Hedging Relationships Year Ended December 31, 2019 Year Ended December 31, 2018 ($ in Thousands) Interest Income Other Income (Expense) Interest Income Other Income (Expense) Total amounts of income and expense line items presented on the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded (a) $ (448) $ — $ (1,325) $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 5,871 — (502) — Derivatives designated as hedging instruments (a) (6,319) — (823) — (a) Includes net settlements on the derivatives The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income during the twelve months ended December 31, 2019 and 2018: Consolidated Statements of Income Category of For the Year Ended December 31, ($ in Thousands) 2019 2018 Derivative Instruments Interest rate-related instruments — customer and mirror, net Capital market fees, net $ (1,393) $ (316) Interest rate lock commitments (mortgage) Mortgage banking, net 319 670 Forward commitments (mortgage) Mortgage banking, net 1,362 (1,759) Foreign currency exchange forwards Capital market fees, net 132 (110) Commodity contracts Capital market fees, net (1,763) (314) |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate-Related Instruments, Commodity Contracts, and Foreign Exchange Forwards (“Interest, Commodity, and Foreign Exchange Agreements”) The Corporation enters into interest rate-related instruments to facilitate the interest rate risk management strategies of commercial customers, commodity contracts to manage commercial customers' exposure to fluctuating commodity prices, and foreign exchange forwards to manage customers' exposure to fluctuating foreign exchange rates. The Corporation mitigates these risks by entering into equal and offsetting agreements with highly rated third-party financial institutions. The Corporation is party to master netting arrangements with its financial institution counterparties that create single net settlements of all legal claims or obligations to pay or receive the net amount of settlement of the individual interest, commodity, and foreign exchange agreements. Collateral, usually in the form of investment securities and cash, is posted by the counterparty with net liability positions in accordance with contract thresholds. Derivatives subject to a legally enforceable master netting agreement are reported on a net basis, net of cash collateral, in other assets and accrued expenses and other liabilities, on the face of the consolidated balance sheets. In the third quarter of 2019, the Corporation elected to offset derivative assets and liabilities and cash collateral with the same counterparty where it has a legally enforceable master netting agreement in place. See the derivatives section within Note 1 for additional information on the change in accounting policy and Note 14 for additional information on the Corporation’s derivative and hedging activities. Securities Sold Under Agreement to Repurchase The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. These repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). The right of set-off for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). In addition, the Corporation does not enter into reverse repurchase agreements; therefore, there is no such offsetting to be done with the repurchase agreements. See Note 9 for additional disclosures on repurchase agreements. The following table presents the assets and liabilities subject to an enforceable master netting arrangement. The interest, commodity and foreign exchange agreements we have with our commercial customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table: Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets Net Amounts Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets ($ in Thousands) Gross Amounts Recognized Derivative Liabilities Offset Cash Collateral Received Net Derivative assets (a) December 31, 2019 $ 11,864 $ (10,410) $ (1,408) $ 45 $ — $ 45 December 31, 2018 65,596 (5,322) (27,593) 32,681 (31,837) 843 Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets Net Amounts Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets ($ in Thousands) Gross Amounts Recognized Derivative Assets Offset Cash Collateral Pledged Net Derivative liabilities (a) December 31, 2019 $ 22,189 $ (10,410) $ (11,365) $ 413 $ — $ 413 December 31, 2018 22,951 (5,322) (63) 17,567 (17,551) 16 |
Commitments, Off-Balance Sheet
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities | Note 16 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include lending-related and other commitments (see below) as well as derivative instruments (see Note 14). The following is a summary of lending-related commitments: ($ in Thousands) 2019 2018 Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale (a)(b) $ 9,024,412 $ 8,720,293 Commercial letters of credit (a) 7,081 7,599 Standby letters of credit (c) 277,969 255,904 (a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at December 31, 2019 and 2018. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 14. (c) The Corporation has established a liability of $3 million and $2 million at December 31, 2019 and December 31, 2018, respectively, as an estimate of the fair value of these financial instruments. Lending-related Commitments As a financial services provider, the Corporation routinely enters into commitments to extend credit. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Corporation, with each customer’s creditworthiness evaluated on a case-by-case basis. The commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of those instruments. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Since a significant portion of commitments to extend credit are subject to specific restrictive loan covenants or may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. An allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded commitments (including unfunded loan commitments and letters of credit). The allowance for unfunded commitments totaled $22 million and $24 million at December 31, 2019 and December 31, 2018, respectively, and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 1 for the Corporation’s accounting policy on the allowance for unfunded commitments. See Note 4 for additional information on the allowance for unfunded commitments. Lending-related commitments include commitments to extend credit, commitments to originate residential mortgage loans held for sale, commercial letters of credit, and standby letters of credit. Commitments to extend credit are legally binding agreements to lend to customers at predetermined interest rates, as long as there is no violation of any condition established in the contracts. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 14. Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Other Commitments The Corporation invests in qualified affordable housing projects, federal and state historic projects, new market projects, and opportunity zone funds for the purpose of community reinvestment and obtaining tax credits and other tax benefits. Return on the Corporation's investment in these projects and funds comes in the form of tax credits and tax losses that pass through to the Corporation, and deferral or elimination of capital gain recognition for tax purposes. The aggregate carrying value of these investments at December 31, 2019, was $248 million, compared to $136 million at December 31, 2018, included in tax credit and other investments on the consolidated balance sheets. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects. Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $19 million, $17 million, and $8 million during the years ended December 31, 2019, 2018, and 2017, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $234 million at December 31, 2019 and $132 million at December 31, 2018. The Corporation’s unfunded equity contributions relating to investments in qualified affordable housing, federal and state historic projects, and new market projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled $123 million and $51 million at December 31, 2019 and 2018, respectively. During the years ended December 31, 2019 and 2018, the Corporation did not record any impairment related to qualified affordable housing investments. The Corporation has principal investment commitments to provide capital-based financing to private and public companies through either direct investment in specific companies or through investment funds and partnerships. The timing of future cash requirements to fund such principal investment commitments is generally dependent on the investment cycle, whereby privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, which can vary based on overall market conditions, as well as the nature and type of industry in which the companies operate. The Corporation also invests in loan pools that support CRA loans. The timing of future cash requirements to fund these pools is dependent upon loan demand, which can vary over time. The aggregate carrying value of these investments at December 31, 2019, was $26 million, compared to $25 million at December 31, 2018, included in tax credit and other investments on the consolidated balance sheets. Legal Proceedings The Corporation is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which involve claims for substantial amounts. Although there can be no assurance as to the ultimate outcomes, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding matters and intends to continue to defend itself vigorously with respect to such legal proceedings. The Corporation will consider settlement of cases when, in management’s judgment, it is in the best interests of the Corporation and its shareholders. On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available. On a matter by matter basis, an accrual for loss is established for those matters which the Corporation believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, each accrual is adjusted as appropriate to reflect any subsequent developments. Accordingly, management’s estimate will change from time to time, and actual losses may be more or less than the current estimate. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established. Resolution of legal claims is inherently unpredictable, and in many legal proceedings various factors exacerbate this inherent unpredictability, including where the damages sought are unsubstantiated or indeterminate, it is unclear whether a case brought as a class action will be allowed to proceed on that basis, discovery is not complete, the proceeding is not yet in its final stages, the matters present legal uncertainties, there are significant facts in dispute, there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants), or there is a wide range of potential results. The Corporation does not believe it is presently subject to any legal proceedings the resolution of which would have a material adverse effect on our business, financial condition, operating results, or cash flows. Regulatory Matters A variety of consumer products, including mortgage and deposit products, and certain fees and charges related to such products, have come under increased regulatory scrutiny. It is possible that regulatory authorities could bring enforcement actions, including civil money penalties, or take other actions against the Corporation and the Bank in regard to these consumer products. The Bank could also determine of its own accord, or be required by regulators, to refund or otherwise make remediation payments to customers in connection with these products. It is not possible at this time for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss related to such matters. Mortgage Repurchase Reserve The Corporation sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under the Corporation's usual underwriting procedures, and are most often sold on a nonrecourse basis, primarily to the GSEs. The Corporation’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Corporation may be obligated to repurchase the loan or reimburse the GSEs for losses incurred (collectively, “make whole requests”). The make whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. As a result of make whole requests, the Corporation has repurchased loans with principal balances of approximately $2 million for both years ended December 31, 2019 and 2018. The loss reimbursement and settlement claims paid for the years ended December 31, 2019 and 2018, respectively, were negligible. Make whole requests during 2018 and 2019 generally arose from loans sold during the period of January 1, 2012 to December 31, 2018. Since January 1, 2012, loans sold totaled $12.5 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of December 31, 2019, approximately $7.4 billion of these sold loans remain outstanding. The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The mortgage repurchase reserve was approximately $795,000 and $752,000 at December 31, 2019 and 2018, respectively. The Corporation may also sell residential mortgage loans with limited recourse (limited in that the recourse period ends prior to the loan’s maturity, usually after certain time and / or loan paydown criteria have been met), whereby repurchase could be required if the loan had defined delinquency issues during the limited recourse periods. At December 31, 2019 and December 31, 2018, there were approximately $39 million and $47 million, respectively, of residential mortgage loans sold with such recourse risk. There have been limited instances and immaterial historical losses on repurchases for recourse under the limited recourse criteria. The Corporation has a subordinate position to the FHLB in the credit risk on residential mortgage loans it sold to the FHLB in exchange for a monthly credit enhancement fee. The Corporation has not sold loans to the FHLB with such credit risk retention since February 2005. At December 31, 2019 and December 31, 2018, there were $45 million and $57 million, respectively, of such residential mortgage loans with credit risk recourse, upon which there have been negligible historical losses to the Corporation. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information Presented below are condensed financial statements for the Parent Company: Balance Sheets December 31, ($ in Thousands) 2019 2018 Assets Cash and due from banks $ 17,427 $ 16,245 Interest-bearing deposits in other financial institutions 27,186 38,374 Notes and interest receivable from subsidiaries 201,551 453,615 Investments in and receivable due from subsidiaries 3,925,596 3,787,574 Other assets 46,234 47,448 Total assets $ 4,217,994 $ 4,343,256 Liabilities and Stockholders' Equity Commercial paper $ 32,016 $ 45,423 Senior notes, at par — 250,000 Subordinated notes, at par 250,000 250,000 Long-term funding capitalized costs (1,428) (2,043) Total long-term funding 248,572 497,957 Accrued expenses and other liabilities 15,282 18,988 Total liabilities 295,870 562,368 Preferred equity 256,716 256,716 Common equity 3,665,407 3,524,171 Total stockholders’ equity 3,922,124 3,780,888 Total liabilities and stockholders’ equity $ 4,217,994 $ 4,343,256 Statements of Income For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Income Income from subsidiaries $ 341,789 $ 354,637 $ 253,485 Interest income on notes receivable from subsidiaries 13,983 12,199 4,175 Other income 761 994 1,763 Total income 356,532 367,830 259,423 Expense Interest expense on short and long-term funding 16,802 18,355 18,464 Other expense 6,583 11,736 6,927 Total expense 23,384 30,091 25,391 Income before income tax expense 333,148 337,739 234,032 Income tax expense 6,359 4,176 4,768 Net income 326,790 333,562 229,264 Preferred stock dividends 15,202 10,784 9,347 Net income available to common equity $ 311,587 $ 322,779 $ 219,917 Statements of Cash Flows For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 326,790 $ 333,562 $ 229,264 Adjustments to reconcile net income to net cash provided by operating activities: (Increase) decrease in equity in undistributed net income (loss) of subsidiaries (21,789) (18,636) (40,485) (Gain) loss on sales of assets, net — — (88) Net change in other assets and accrued expenses and other liabilities 265 (92,366) (9,589) Net cash provided by operating activities 305,266 222,562 179,102 Cash Flows from Investing Activities Proceeds from sales of investment securities — 827 2,618 Net (increase) decrease in notes receivable from subsidiaries 250,000 (139,317) (300,000) Net (increase) decrease in loans — 2,210 1,058 Net cash provided by (used in) investing activities 250,000 (136,280) (296,324) Cash Flows from Financing Activities Net increase (decrease) in commercial paper (13,406) (22,044) (34,221) Redemption of Corporation's senior notes (250,000) — — Proceeds from issuance of common stock for stock-based compensation plans 11,216 18,408 27,619 Proceeds from issuance of preferred stock — 97,315 — Purchase of preferred stock — (537) — Common stock warrants exercised — (1) — Purchase of common stock returned to authorized but unissued — (33,075) (37,031) Issuance of treasury stock for acquisition — 91,296 — Purchase of treasury stock (186,076) (213,598) (9,290) Cash dividends on common stock (111,804) (105,519) (76,417) Cash dividends on preferred stock (15,202) (10,784) (9,347) Net cash used in financing activities (565,272) (178,540) (138,687) Net increase (decrease) in cash and cash equivalents (10,006) (92,258) (255,909) Cash and cash equivalents at beginning of year 54,619 146,877 402,786 Cash and cash equivalents at end of year $ 44,613 $ 54,619 $ 146,877 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept). See Note 1 for the Corporation’s accounting policy for fair value measurements. Following is a description of the valuation methodologies used for the Corporation’s more significant instruments measured on a recurring basis at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis Investment Securities Available For Sale: Where quoted prices are available in an active market, investment securities are classified in Level 1 of the fair value hierarchy. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows, with consideration given to the nature of the quote and the relationship of recently evidenced market activity to the fair value estimate, and are classified in Level 2 of the fair value hierarchy. Lastly, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, securities are classified within Level 3 of the fair value hierarchy. To validate the fair value estimates, assumptions, and controls, the Corporation looks to transactions for similar instruments and utilizes independent pricing provided by third party vendors or brokers and relevant market indices. While none of these sources are solely indicative of fair value, they serve as directional indicators for the appropriateness of the Corporation’s fair value estimates. The Corporation has determined that the fair value measures of its investment securities are classified predominantly within Level 2 of the fair value hierarchy. See Note 3 for additional disclosure regarding the Corporation’s investment securities. Equity Securities with Readily Determinable Fair Values: The Corporation's portfolio of equity securities with readily determinable fair values is primarily comprised of CRA Qualified Investment mutual funds. Since quoted prices for the Corporation's equity securities are readily available in an active market, they are classified within Level 1 of the fair value hierarchy. See Note 3 for additional disclosure regarding the Corporation’s equity securities. Residential Loans Held For Sale: Residential loans held for sale, which consist generally of current production of certain fixed-rate, first-lien residential mortgage loans, are carried at estimated fair value. Management has elected the fair value option to account for all newly originated mortgage loans held for sale, which results in the financial impact of changing market conditions being reflected currently in earnings as opposed to being dependent upon the timing of sales. Therefore, the continually adjusted values better reflect the price the Corporation expects to receive from the sale of such loans. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics, which the Corporation classifies as a Level 2 fair value measurement. Derivative Financial Instruments (Interest Rate-Related Instruments): The Corporation utilizes interest rate swaps to hedge exposure to interest rate risk and variability of fair value related to changes in the underlying interest rate of the hedged item. These hedged interest rate swaps are classified as fair value hedges. During the fourth quarter of 2019, the Corporation terminated the outstanding fair value hedges. See Note 14 for additional disclosure regarding the Corporation's fair value hedges. In addition, the Corporation offers interest rate-related instruments (swaps and caps) to service its customers’ needs, for which the Corporation simultaneously enters into offsetting derivative financial instruments (i.e., mirror interest rate-related instruments) with third parties to manage its interest rate risk associated with these financial instruments. The valuation of the Corporation’s derivative financial instruments is determined using discounted cash flow analysis on the expected cash flows of each derivative and also includes a nonperformance / credit risk component (credit valuation adjustment). See Note 14 for additional disclosure regarding the Corporation’s interest rate-related instruments. The discounted cash flow analysis component in the fair value measurement reflects the contractual terms of the derivative financial instruments, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. More specifically, the fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) with the variable cash payments (or receipts) based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Likewise, the fair values of interest rate options (i.e., interest rate caps) are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fall below (or rise above) the strike rate of the floors (or caps), with the variable interest rates used in the calculation of projected receipts on the floor (or cap) based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative financial instruments for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. While the Corporation has determined that the majority of the inputs used to value its interest rate-related derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions as of December 31, 2019 and 2018, and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. Therefore, the Corporation has determined that the fair value measures of its derivative financial instruments in their entirety are classified within Level 2 of the fair value hierarchy. Derivative Financial Instruments (Foreign Currency Exchange Forwards): The Corporation provides foreign currency exchange services to customers. In addition, the Corporation may enter into a foreign currency exchange forward to mitigate the exchange rate risk attached to the cash flows of a loan or as an offsetting contract to a forward entered into as a service to its customer. The valuation of the Corporation’s foreign currency exchange forwards is determined using quoted prices of foreign currency exchange forwards with similar characteristics, with consideration given to the nature of the quote and the relationship of recently evidenced market activity to the fair value estimate, and is classified within Level 2 of the fair value hierarchy. See Note 14 for additional disclosures regarding the Corporation’s foreign currency exchange forwards. Derivative Financial Instruments (Commodity Contracts): The Corporation enters into commodity contracts to manage commercial customers' exposure to fluctuating commodity prices, for which the Corporation simultaneously enters into offsetting derivative financial instruments (i.e., mirror commodity contracts) with third parties to manage its risk associated with these financial instruments. The valuation of the Corporation’s commodity contracts is determined using quoted prices of the underlying instruments, and also includes a nonperformance / credit risk component (credit valuation adjustment). See Note 14 for additional disclosures regarding the Corporation’s commodity contracts. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative financial instruments for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings. While the Corporation has determined that the majority of the inputs used to value its derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs, such as probability of default and loss given default of the underlying loans to evaluate the likelihood of default by itself and its counterparties. The Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions as of December 31, 2019 and 2018, and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. Therefore, the Corporation has determined that the fair value measures of its derivative financial instruments in their entirety are classified within Level 2 of the fair value hierarchy. The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of December 31, 2019 and 2018, aggregated by the level in the fair value hierarchy within which those measurements fall: ($ in Thousands) Fair Value Hierarchy December 31, 2019 December 31, 2018 Assets Investment securities available for sale U.S. Treasury securities Level 1 $ — $ 999 Obligations of state and political subdivisions (municipal securities) Level 2 546,160 — Residential mortgage-related securities FNMA / FHLMC Level 2 132,660 295,252 GNMA Level 2 985,139 2,128,531 Private-label Level 2 — 1,003 Commercial mortgage-related securities FNMA / FHLMC Level 2 21,728 — GNMA Level 2 1,310,207 1,220,797 FFELP asset-backed securities Level 2 263,693 297,360 Other debt securities Level 2 3,000 3,000 Total investment securities available for sale Level 1 — 999 Total investment securities available for sale Level 2 3,262,586 3,945,943 Equity securities with readily determinable fair values Level 1 1,646 1,568 Residential loans held for sale Level 2 136,280 64,321 Interest rate-related instruments (a) Level 2 77,024 52,796 Foreign currency exchange forwards (a) Level 2 4,226 721 Commodity contracts (a) Level 2 20,528 35,426 Purchased options (time deposit) Level 2 — 109 Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 2,527 2,208 Liabilities Interest rate-related instruments (a) Level 2 $ 13,073 $ 52,653 Foreign currency exchange forwards (a) Level 2 4,048 675 Commodity contracts (a) Level 2 19,624 34,340 Written options (time deposit) Level 2 — 109 Interest rate products (designated as hedging instruments) Level 2 — 40 Forward commitments to sell residential mortgage loans Level 3 710 2,072 (a) Figures presented gross before netting. See Note 14 and Note 15 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place. The table below presents a rollforward of the consolidated balance sheets amounts for the years ended December 31, 2019 and 2018, for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy: ($ in Thousands) Derivative Financial Instruments Balance December 31, 2017 $ 1,225 Total net gains (losses) included in income Mortgage derivative gain (loss) (1,085) Balance December 31, 2018 $ 140 Total net gains (losses) included in income Mortgage derivative gain (loss) 1,681 Balance December 31, 2019 $ 1,817 For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019, the Corporation utilized the following valuation techniques and significant unobservable inputs: Derivative Financial Instruments (Mortgage Derivative — Interest Rate Lock Commitments to Originate Residential Mortgage Loans Held For Sale): The fair value is determined by the change in value from each loan's rate lock date to the expected rate lock expiration date based on the underlying loan attributes, estimated closing ratios, and investor price matrix determined to be reasonably applicable to each loan commitment. The closing ratio calculation takes into consideration historical experience and loan-level attributes, particularly the change in the current interest rates from the time of initial rate lock. The closing ratio is periodically reviewed for reasonableness and reported to the Associated Mortgage Risk Management Committee. At December 31, 2019, the closing ratio was 86%. Derivative Financial Instruments (Mortgage Derivative—Forward Commitments to Sell Mortgage Loans): Mortgage derivatives include forward commitments to deliver closed-end residential mortgage loans into conforming Agency MBS or conforming Cash Forward sales. The fair value of such instruments is determined by the difference of current market prices for such traded instruments or available from forward cash delivery commitments and the original traded price for such commitments. The Corporation also relies on an internal valuation model to estimate the fair value of its forward commitments to sell residential mortgage loans (i.e., an estimate of what the Corporation would receive or pay to terminate the forward delivery contract based on market prices for similar financial instruments), which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available. While there are Level 2 and 3 inputs used in the valuation models, the Corporation has determined that the majority of the inputs significant in the valuation of both of the mortgage derivatives fall within Level 3 of the fair value hierarchy. See Note 14 for additional disclosure regarding the Corporation’s mortgage derivatives. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Following is a description of the valuation methodologies used for the Corporation’s more significant instruments measured on a nonrecurring basis at the lower of amortized cost or estimated fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Commercial Loans Held For Sale: Commercial loans held for sale are carried at the lower of cost or estimated fair value. The estimated fair value is based on a discounted cash flow analysis, which the Corporation classifies as a Level 2 nonrecurring fair value measurement. OREO: Certain OREO, upon initial recognition, was re-measured and reported at fair value through a charge off to the allowance for loan losses based upon the estimated fair value of the OREO, less estimated selling costs. The fair value of OREO, upon initial recognition or subsequent impairment, was estimated using appraised values, which the Corporation classifies as a Level 2 nonrecurring fair value measurement. For Level 3 assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2019, the Corporation utilized the following valuation techniques and significant unobservable inputs. Impaired Loans: The Corporation considers a loan impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. See Note 4 for additional information regarding the Corporation’s impaired loans. Mortgage Servicing Rights: MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its MSRs. The valuation model incorporates prepayment assumptions to project MSRs cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the MSRs. The valuation model considers portfolio characteristics of the underlying mortgages, contractually specified servicing fees, prepayment assumptions, discount rate assumptions, delinquency rates, late charges, other ancillary revenue, costs to service, and other economic factors. The Corporation periodically reviews and assesses the underlying inputs and assumptions used in the model. In addition, the Corporation compares its fair value estimates and assumptions to observable market data for MSRs, where available, and to recent market activity and actual portfolio experience. Due to the nature of the valuation inputs, MSRs are classified within Level 3 of the fair value hierarchy. The Corporation uses the amortization method (i.e., lower of amortized cost or estimated fair value measured on a nonrecurring basis), not fair value measurement accounting, for its MSRs assets. The discounted cash flow analyses that generate expected market prices utilize the observable characteristics of the MSRs portfolio, as well as certain unobservable valuation parameters. The significant unobservable inputs used in the fair value measurement of the Corporation’s MSRs are the weighted average constant prepayment rate and weighted average discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. These parameter assumptions fall within a range that the Corporation, in consultation with an independent third party, believes purchasers of servicing would apply to such portfolios sold into the current secondary servicing market. Discussions are held with members from Treasury and the Community, Consumer, and Business segment to reconcile the fair value estimates and the key assumptions used by the respective parties in arriving at those estimates. The Associated Mortgage Risk Management Committee is responsible for providing control over the valuation methodology and key assumptions. To assess the reasonableness of the fair value measurement, the Corporation also compares the fair value and constant prepayment rate to a value calculated by an independent third party on an annual basis. See Note 5 for additional disclosure regarding the Corporation’s MSRs. Equity Securities Without Readily Determinable Fair Values: The Corporation measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer, with such changes recognized in earnings. Included in equity securities without readily determinable fair values are 77,000 Visa Class B restricted shares carried at fair value. These shares are currently subject to certain transfer restrictions and will be convertible into Visa Class A shares upon final resolution of certain litigation matters involving Visa. Based on the current conversion factor, the Corporation expects 77,000 shares of Visa Class B to convert to 124,956 shares of Visa Class A upon the litigation resolution. In its determination of the new carrying values upon observable price changes, the Corporation will adjust the prices if deemed necessary to arrive at the Corporation's estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities and other adjustments. See Note 3 for additional disclosure regarding the Corporation’s equity securities without readily determinable fair values. The following table presents the carrying value of equity securities without readily determinable fair values still held as of December 31, 2019 that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of December 31, 2019: ($ in Thousands) Equity securities without readily determinable fair values Carrying value as of December 31, 2018 $ — Upward carrying value changes 13,444 Carrying value as of December 31, 2019 $ 13,444 Cumulative upward carrying value changes between January 1, 2018 and December 31, 2019 $ 13,444 Cumulative downward carrying value changes between January 1, 2018 and December 31, 2019 $ — The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall: ($ in Thousands) Fair Value Hierarchy Fair Value Consolidated Statements of Income Category of Adjustment Recognized on the Consolidated Statements of Income December 31, 2019 Assets Impaired loans (a) Level 3 $ 45,792 Provision for credit losses (b) $ (66,172) OREO (c) Level 2 3,565 Other noninterest expense (1,860) Mortgage servicing rights Level 3 72,532 Mortgage banking, net (63) Equity securities Level 3 13,444 Investment securities gains (losses), net 13,444 December 31, 2018 Assets Impaired loans (a) Level 3 $ 26,191 Provision for credit losses (b) $ (14,521) OREO (c) Level 2 2,200 Other noninterest expense (1,545) Mortgage servicing rights Level 3 81,012 Mortgage banking, net 545 (a) Represents individually evaluated impaired loans, net of the related allowance for loan losses. (b) Represents provision for credit losses on individually evaluated impaired loans. (c) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a nonrecurring basis include the fair value analysis in the second step of a goodwill impairment test, and intangible assets and other nonfinancial long-lived assets measured at fair value for impairment assessment. The Corporation's significant Level 3 measurements which employ unobservable inputs that are readily quantifiable pertain to MSRs and impaired loans. The table below presents information about these inputs and further discussion is found above: December 31, 2019 Valuation Technique Significant Unobservable Input Weighted Average Input Applied Mortgage servicing rights Discounted cash flow Discount rate 9% Mortgage servicing rights Discounted cash flow Constant prepayment rate 12% Impaired loans Appraisals / Discounted cash flow Collateral / Discount factor 44% Fair Value of Financial Instruments The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for the Corporation’s financial instruments: December 31, 2019 December 31, 2018 ($ in Thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 373,380 $ 373,380 $ 507,187 $ 507,187 Interest-bearing deposits in other financial institutions Level 1 207,624 207,624 221,226 221,226 Federal funds sold and securities purchased under agreements to resell Level 1 7,740 7,740 148,285 148,285 Investment securities held to maturity Level 1 999 1,018 — — Investment securities held to maturity Level 2 2,204,084 2,275,447 2,740,511 2,710,271 Investment securities available for sale Level 1 — — 999 999 Investment securities available for sale Level 2 3,262,586 3,262,586 3,945,943 3,945,943 Equity securities with readily determinable fair values Level 1 1,646 1,646 1,568 1,568 Equity securities without readily determinable fair values Level 3 13,444 13,444 — — FHLB and Federal Reserve Bank stocks Level 2 227,347 227,347 250,534 250,534 Residential loans held for sale Level 2 136,280 136,280 64,321 64,321 Commercial loans held for sale Level 2 15,000 15,000 14,943 14,943 Loans, net Level 3 22,620,068 22,399,621 22,702,406 22,317,395 Bank and corporate owned life insurance Level 2 671,948 671,948 663,203 663,203 Derivatives (other assets) (a) Level 2 101,778 101,778 89,052 89,052 Interest rate lock commitments to originate residential mortgage loans held for sale (other assets) Level 3 2,527 2,527 2,208 2,208 Financial liabilities Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 21,156,261 $ 21,156,261 $ 22,081,992 $ 22,081,992 Brokered CDs and other time deposits (b) Level 2 2,622,803 2,622,803 2,815,401 2,815,401 Short-term funding (c) Level 2 465,113 465,113 157,074 157,074 Long-term funding Level 2 549,343 588,774 795,611 826,612 FHLB advances Level 2 3,180,967 3,207,793 3,574,371 3,565,572 Standby letters of credit (d) Level 2 2,710 2,710 2,482 2,482 Derivatives (accrued expenses and other liabilities) (a) Level 2 36,745 36,745 87,817 87,817 Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities) Level 3 710 710 2,072 2,072 (a) Figures presented gross before netting. See Note 14 and Note 15 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place. (b) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value. (c) The carrying amount is a reasonable estimate of fair value for existing short-term funding. (d) The commitment on standby letters of credit was $278 million and $256 million at December 31, 2019 and 2018, respectively. See Note 16 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters Restrictions on Cash and Due From Banks The Corporation’s bank subsidiary is required to maintain certain vault cash and reserve balances with the Federal Reserve Bank to meet specific reserve requirements. These requirements approximated $189 million at December 31, 2019. Regulatory Capital Requirements The Corporation and its subsidiary bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation’s assets, liabilities, and certain off- balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation to maintain minimum amounts and ratios (set forth in the table below) of total and Common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2019 and 2018, that the Corporation meets all capital adequacy requirements to which it is subject. For additional information on the capital requirements applicable for the Corporation and the Bank, please see Part I, Item 1. As of December 31, 2019 and 2018, the most recent notifications from the OCC and the FDIC categorized the subsidiary bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the subsidiary bank must maintain minimum ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the institution’s category. The actual capital amounts and ratios of the Corporation and its significant subsidiary are presented below. No deductions from capital were made for interest rate risk in 2019 or 2018. Actual For Capital Adequacy To Be Well Capitalized Under Prompt Corrective Action Provisions (b) ($ in Thousands) Amount Ratio (a) Amount Ratio (a) Amount Ratio (a) As of December 31 , 2019 Associated Banc-Corp Total capital $ 3,208,625 13.21 % $ 1,943,711 ≥ 8.00 % Tier 1 capital 2,736,776 11.26 % 1,457,783 ≥ 6.00 % Common equity Tier 1 capital 2,480,698 10.21 % 1,093,337 ≥ 4.50 % Leverage 2,736,776 8.83 % 1,239,431 ≥ 4.00 % Associated Bank, N.A. Total capital $ 2,892,650 11.95 % $ 1,936,732 ≥ 8.00 % $ 2,420,915 ≥ 10.00 % Tier 1 capital 2,669,372 11.03 % 1,452,549 ≥ 6.00 % 1,936,732 ≥ 8.00 % Common equity Tier 1 capital 2,469,578 10.20 % 1,089,412 ≥ 4.50 % 1,573,595 ≥ 6.50 % Leverage 2,669,372 8.63 % 1,236,565 ≥ 4.00 % 1,545,706 ≥ 5.00 % As of December 31 , 2018 Associated Banc-Corp Total capital $ 3,216,575 13.49 % $ 1,907,403 ≥ 8.00 % Tier 1 capital 2,705,939 11.35 % 1,430,553 ≥ 6.00 % Common equity Tier 1 capital 2,449,721 10.27 % 1,072,914 ≥ 4.50 % Leverage 2,705,939 8.49 % 1,275,048 ≥ 4.00 % Associated Bank, N.A. Total capital $ 2,909,064 12.25 % $ 1,900,536 ≥ 8.00 % $ 2,375,671 ≥ 10.00 % Tier 1 capital 2,646,705 11.14 % 1,425,402 ≥ 6.00 % 1,900,536 ≥ 8.00 % Common equity Tier 1 capital 2,446,782 10.30 % 1,069,052 ≥ 4.50 % 1,544,186 ≥ 6.50 % Leverage 2,646,705 8.32 % 1,272,804 ≥ 4.00 % 1,591,006 ≥ 5.00 % (a) When fully phased-in on January 1, 2019, the Basel III capital rules included a capital conservation buffer of 2.5% that was added on top of each of the minimum risk-based capital ratios noted above. Implementation began on January 1, 2016 at the 0.625% level and has increased each subsequent January 1, until it reached 2.5% on January 1, 2019. (b) Prompt corrective action provisions are not applicable at the bank holding company level. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share See Note 1 for the Corporation’s accounting policy on earnings per common share. Presented below are the calculations for basic and diluted earnings per common share: For the Years Ended December 31, ($ in Thousands, except per share data) 2019 2018 2017 Net income $ 326,790 $ 333,562 $ 229,264 Preferred stock dividends (15,202) (10,784) (9,347) Net income available to common equity 311,587 322,779 219,917 Common shareholder dividends (111,091) (104,981) (75,967) Unvested share-based payment awards (713) (537) (450) Undistributed earnings 199,784 217,260 143,500 Undistributed earnings allocated to common shareholders 198,424 216,199 142,593 Undistributed earnings allocated to unvested share-based payment awards 1,360 1,060 907 Undistributed earnings $ 199,784 $ 217,260 $ 143,500 Basic Distributed earnings to common shareholders $ 111,091 $ 104,981 $ 75,967 Undistributed earnings allocated to common shareholders 198,424 216,199 142,593 Total common shareholders earnings, basic $ 309,514 $ 321,181 $ 218,560 Diluted Distributed earnings to common shareholders $ 111,091 $ 104,981 $ 75,967 Undistributed earnings allocated to common shareholders 198,424 216,199 142,593 Total common shareholders earnings, diluted $ 309,514 $ 321,181 $ 218,560 Weighted average common shares outstanding $ 160,534 $ 167,345 $ 150,877 Effect of dilutive common stock awards 1,398 1,985 2,038 Effect of dilutive common stock warrants — 402 732 Diluted weighted average common shares outstanding $ 161,932 $ 169,732 $ 153,647 Basic earnings per common share $ 1.93 $ 1.92 $ 1.45 Diluted earnings per common share $ 1.91 $ 1.89 $ 1.42 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 21 Segment Reporting The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in Note 1, with certain exceptions. The more significant of these exceptions are described herein. The reportable segment results are presented based on the Corporation's internal management accounting process. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. GAAP. As a result, reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in previously reported segment financial data. Additionally, the information presented is not indicative of how the segments would perform if they operated as independent entities. To determine financial performance of each segment, the Corporation allocates FTP assignments, the provision for credit losses, certain noninterest expenses, income tax, and equity to each segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed. The Corporation allocates net interest income using an internal FTP methodology that charges users of funds (assets) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment, and / or re-pricing characteristics of the assets and liabilities. The net effect of this allocation is offset in the Risk Management and Shared Services segment to ensure the consolidated total reflects the Corporation's net interest income. The net FTP allocation is reflected as net intersegment interest income (expense) in the accompanying tables. A credit provision is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an incurred loss model using the methodologies described in Note 1 to assess the overall appropriateness of the allowance for loan losses and the allowance for unfunded commitments. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expenses and bank-wide expense accruals (including amortization of core deposit and other intangible assets associated with acquisitions) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses, the net tax residual is recorded in Risk Management and Shared Services. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk). A description of each business segment is presented below. Corporate and Commercial Specialty: The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions. In serving this segment we compete based on an in-depth understanding of our customers’ financial needs, the ability to match market competitive solutions to those needs, and the highest standards of relationship and service excellence in the delivery of these services. Delivery of services is provided through our corporate and commercial units, our commercial real estate unit, as well as our specialized industries and commercial financial services units. Within this segment we provide the following products and services: (1) lending solutions, such as commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and, for our larger clients, loan syndications; (2) deposit and cash management solutions such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services, and (3) specialized financial services such as interest rate risk management, foreign exchange solutions, and commodity hedging. Community, Consumer, and Business: The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses. In serving this segment we compete based on providing a broad range of solutions to meet the needs of our customers in their entire financial lifecycle, convenient access to our services through multiple channels such as branches, phone based services, online and mobile banking, and a relationship based business model which assists our customers in navigating any changes and challenges in their financial circumstances. Delivery of services is provided through our various consumer banking, community banking, and private client units. Within this segment we provide the following products and services: (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; (2) deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (3) investable funds solutions such as savings, money market deposit accounts, IRA accounts, certificates of deposit, fixed and variable annuities, full-service, discount and on-line investment brokerage; investment advisory services; trust and investment management accounts; (4) insurance and benefits related products and services; and (5) fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management. Risk Management and Shared Services: The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are key shared functions. The segment also includes Parent Company activity, intersegment eliminations and residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long term credit charge mismatches). The earning assets within this segment include the Corporation’s investment portfolio, and capital includes both allocated and any remaining unallocated capital. All acquisition costs are included in this segment. Information about the Corporation’s segments is presented below: Corporate and Commercial Specialty For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 450,532 $ 457,613 $ 360,789 Net intersegment interest income (expense) (76,064) (56,356) (3,737) Segment net interest income 374,467 401,258 357,051 Noninterest income 53,282 52,321 52,297 Total revenue 427,749 453,578 409,348 Credit provision 52,382 44,592 42,298 Noninterest expense 156,348 160,399 156,890 Income (loss) before income taxes 219,019 248,587 210,160 Income tax expense (benefit) 41,209 47,850 71,655 Net income $ 177,809 $ 200,737 $ 138,505 Allocated goodwill $ 525,836 $ 524,525 $ 428,000 Community, Consumer, and Business For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 332,850 $ 357,245 $ 316,008 Net intersegment interest income (expense) 103,468 87,737 45,353 Segment net interest income 436,318 444,982 361,361 Noninterest income 307,750 295,647 266,250 Total revenue 744,067 740,629 627,611 Credit provision 20,043 20,083 20,400 Noninterest expense 547,423 541,771 490,567 Income (loss) before income taxes 176,601 178,775 116,645 Income tax expense (benefit) 37,105 37,543 40,826 Net income $ 139,496 $ 141,232 $ 75,819 Allocated goodwill $ 650,394 $ 644,498 $ 548,238 Risk Management and Shared Services For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 52,292 $ 64,722 $ 64,423 Net intersegment interest income (expense) (27,403) (31,382) (41,615) Segment net interest income 24,889 33,341 22,808 Noninterest income 19,793 7,600 14,133 Total revenue 44,682 40,941 36,941 Credit provision (56,425) (64,675) (36,698) Noninterest expense (a) 90,217 119,629 61,677 Income (loss) before income taxes 10,890 (14,013) 11,962 Income tax expense (benefit) 1,405 (5,606) (2,978) Net income $ 9,484 $ (8,407) $ 14,941 Allocated goodwill $ — $ — $ — Consolidated Total For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 835,674 $ 879,580 $ 741,220 Net intersegment interest income (expense) — — — Segment net interest income 835,674 879,580 741,220 Noninterest income 380,824 355,568 332,680 Total revenue 1,216,498 1,235,148 1,073,900 Credit provision 16,000 — 26,000 Noninterest expense 793,988 821,799 709,133 Income (loss) before income taxes 406,509 413,349 338,767 Income tax expense (benefit) 79,720 79,786 109,503 Net income $ 326,790 $ 333,562 $ 229,264 Allocated goodwill $ 1,176,230 $ 1,169,023 $ 976,239 (a) For the year ended December 31, 2019, the Risk Management and Shared Services segment includes approximately $7 million of acquisition related costs. For the year ended December 31, 2018, the Risk Management and Shared Services segment includes approximately $29 million of acquisition related costs within noninterest expense and approximately $2 million of acquisition related asset losses, net of asset gains within noninterest income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of accumulated other comprehensive income (loss) at December 31, 2019, 2018, and 2017 respectively, including changes during the years then ended as well as any reclassifications out of accumulated other comprehensive income (loss): ($ in Thousands) Investment Defined Benefit Accumulated Balance, December 31, 2016 $ (20,079) $ (34,600) $ (54,679) Other comprehensive income (loss) before reclassifications (27,040) 14,273 (12,767) Amounts reclassified from accumulated other comprehensive income (loss) Personnel expense — (148) (148) Other expense — 2,282 2,282 Interest income (2,665) — (2,665) Income tax (expense) benefit 11,331 (6,112) 5,219 Net other comprehensive income (loss) during period (18,374) 10,295 (8,079) Balance, December 31, 2017 $ (38,453) $ (24,305) $ (62,758) Other comprehensive income (loss) before reclassifications $ (39,891) $ (28,612) $ (68,503) Amounts reclassified from accumulated other comprehensive income (loss) Investment securities losses (gains), net 1,985 — 1,985 Personnel expense — (148) (148) Other expense — 2,203 2,203 Interest income (572) — (572) Adjustment for adoption of ASU 2016-01 (84) — (84) Adjustment for adoption of ASU 2018-02 (8,419) (5,235) (13,654) Income tax (expense) benefit 9,791 6,767 16,558 Net other comprehensive income (loss) during period (37,189) (25,025) (62,214) Balance, December 31, 2018 $ (75,643) $ (49,330) $ (124,972) Other comprehensive income (loss) before reclassifications $ 111,592 $ 16,296 $ 127,887 Amounts reclassified from accumulated other comprehensive income (loss) Investment securities losses (gains), net (5,957) — (5,957) Personnel expense — (148) (148) Other expense — 476 476 Interest income 895 — 895 Income tax (expense) benefit (26,898) (4,465) (31,363) Net other comprehensive income (loss) during period 79,631 12,158 91,789 Balance, December 31, 2019 $ 3,989 $ (37,172) $ (33,183) |
Revenues (Notes)
Revenues (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 23 Revenue Recognition Revenue is recognized when obligations under the terms of a contract with the Corporation's customer are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We do not have any material significant payment terms as payment is received at or shortly after the satisfaction of the performance obligation. The Corporation's disaggregated revenue by major source is presented below: Corporate and Commercial Specialty For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Service charges and deposit account fees $ 12,883 $ 14,981 $ 16,006 Card-based fees (a) 1,373 1,334 1,125 Other revenue 1,002 694 811 Noninterest Income (in-scope of Topic 606) $ 15,258 $ 17,009 $ 17,941 Noninterest Income (out-of-scope of Topic 606) 38,024 35,311 34,355 Total Noninterest Income $ 53,282 $ 52,321 $ 52,297 Community, Consumer, and Business For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Insurance commissions and fees $ 89,091 $ 89,472 $ 81,468 Wealth management fees (b) 83,467 82,341 70,126 Service charges and deposit account fees 50,203 51,025 48,344 Card-based fees (a) 38,349 38,439 33,849 Other revenue 10,952 11,087 10,095 Noninterest Income (in-scope of Topic 606) $ 272,062 $ 272,363 $ 243,883 Noninterest Income (out-of-scope of Topic 606) 35,687 23,284 22,367 Total Noninterest Income $ 307,750 $ 295,647 $ 266,250 Risk Management and Share Services For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Insurance commissions and fees $ 13 $ 39 $ 6 Wealth management fees (b) — 222 — Service charges and deposit account fees 49 69 77 Card-based fees (a) 190 37 23 Other revenue 675 345 245 Noninterest Income (in-scope of Topic 606) $ 926 $ 712 $ 351 Noninterest Income (out-of-scope of Topic 606) 18,866 6,889 13,783 Total Noninterest Income $ 19,793 $ 7,600 $ 14,133 Consolidated Total For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Insurance commissions and fees $ 89,104 $ 89,511 $ 81,474 Wealth management fees (b) 83,467 82,562 70,126 Service charges and deposit account fees 63,135 66,075 64,427 Card-based fees (a) 39,912 39,810 34,997 Other revenue 12,629 12,126 11,151 Noninterest Income (in-scope of Topic 606) $ 288,247 $ 290,084 $ 262,175 Noninterest Income (out-of-scope of Topic 606) 92,577 65,484 70,505 Total Noninterest Income $ 380,824 $ 355,568 $ 332,680 (a) Certain card-based fees are out-of-scope of Topic 606. (b) Includes trust, asset management, brokerage, and annuity fees. Below is a listing of performance obligations for the Corporation's main revenue streams: Revenue Stream Noninterest income in-scope of Topic 606 Insurance commissions and fees The Corporation's insurance revenue has two distinct performance obligations. The first performance obligation is the selling of the policy as an agent for the carrier. This performance obligation is satisfied upon binding of the policy. The second performance obligation is the ongoing servicing of the policy which is satisfied over the life of the policy. For employee benefits, the payment is typically received monthly. For property and casualty, payments can vary, but are typically received at, or in advance, of the policy period. Service charges and deposit account fees Service charges on deposit accounts consist of monthly service fees (i.e. business analysis fees and consumer service charges) and other deposit account related fees. The Corporation's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to the customers’ accounts. Card-based fees (a) Card-based fees are primarily comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation's debit and credit cards are processed through card payment networks. ATM and merchant fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment is typically received immediately or in the following month. Trust and asset management fees (b) Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to the customers’ accounts. The Corporation's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Brokerage and advisory fees (b) Brokerage and advisory fees primarily consists of investment advisory, brokerage, retirement services, and annuities. The Corporation's performance obligation for investment advisory services and retirement services is generally satisfied, and the related revenue recognized, over the period in which the services are provided. The performance obligation for annuities is satisfied upon sale of the annuity, and therefore, the related revenue is primarily recognized at the time of sale. Payment for these services are typically received immediately or in advance of the service. (a) Certain card-based fees are out-of-scope of Topic 606. (b) Trust and asset management fees and brokerage and advisory fees are included in wealth management fees. Arrangements with Multiple Performance Obligations The Corporation's contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the expected cost plus margin. |
Recent Developments Recent Deve
Recent Developments Recent Developments Details (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Recent Developments | Note 24 Recent Developments On February 4, 2020, the Corporation's Board of Directors declared a regular quarterly cash dividend of $0.18 per common share, payable on March 16, 2020 to shareholders of record at the close of business on March 2, 2020. The Board of Directors also declared a regular quarterly cash dividend of $0.3828125 per depositary share on Associated Banc-Corp's 6.125% Series C Perpetual Preferred Stock, payable on March 16, 2020 to shareholders of record at the close of business on March 2, 2020. The Board of Directors also declared a regular quarterly cash dividend of $0.3359375 per depositary share on Associated's 5.375% Series D Perpetual Preferred Stock, payable on March 16, 2020 to shareholders of record at the close of business on March 2, 2020. The Board of Directors also declared a regular quarterly cash dividend of $0.3671875 per depositary share on Associated's 5.875% Series E Perpetual Preferred Stock, payable on March 16, 2020 to shareholders of record at the close of business on March 2, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business and Basis of Financial Statement Presentation | Business Associated Banc-Corp is a bank holding company headquartered in Wisconsin. The Corporation provides a full range of banking and related financial services to consumer and commercial customers through its network of bank and nonbank subsidiaries. The Corporation is subject to competition from other financial and non-financial institutions that offer similar or competing products and services. The Corporation is regulated by federal and state agencies and is subject to periodic examinations by those agencies. Basis of Financial Statement Presentation The consolidated financial statements include the accounts of the Parent Company and its subsidiaries. Investments in unconsolidated entities (none of which are considered to be variable interest entities in which the Corporation is the primary beneficiary) are accounted for using the cost method of accounting when the Corporation has determined that the cost method is appropriate. Investments not meeting the criteria for cost method accounting are accounted for using the equity method of accounting. Investments in unconsolidated entities are included in tax credit and other investments on the consolidated balance sheets, and the Corporation’s share of income or loss is recorded in other noninterest income, while distributions in excess of the investment are asset gains (losses), net. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, goodwill impairment assessment, MSRs valuation, and income taxes. Management has evaluated subsequent events for potential recognition or disclosure. Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. |
Business Combinations | Business Combinations The Corporation accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the straight line method over their estimated useful lives of up to ten years. Loans that the Corporation acquires in connection with acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. If a reasonable expectation on the amount or timing of such cash flows can't be determined, accretion of the fair value discount for nonperforming loans will be recognized using the cost recovery method of accounting. For purchased credit-impaired loans, the difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Corporation to evaluate the need for an additional allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the non-accretable discount which the Corporation will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. |
Investment Securities | Investment Securities Securities are classified as held to maturity, available for sale, or equity on the consolidated balance sheets at the time of purchase. Investment securities classified as held to maturity, which management has the positive intent and ability to hold to maturity, are reported at amortized cost. Investment securities classified as available for sale, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of OCI. Investment securities classified as equity securities are carried at fair value with changes in fair value immediately reflected in the consolidated statements of income. Any decision to sell investment securities available for sale would be based on various factors, including, but not limited to, asset / liability management strategies, changes in interest rates or prepayment risks, liquidity needs, or regulatory capital considerations. Realized gains or losses on investment security sales (using specific identification method) are included in investment securities gains (losses), net, on the consolidated statements of income. Premiums and discounts are amortized or accreted into interest income over the estimated life (earlier of call date, maturity, or estimated life) of the related security, using a prospective method that approximates level yield. In certain situations, management may elect to transfer certain investment securities from the available for sale classification to the held to maturity classification. In such cases, the investment securities are reclassified at fair value at the time of transfer. Any unrealized gain or loss included in accumulated other comprehensive income (loss) at the time of transfer is retained therein and amortized over the remaining life of the investment security as an adjustment to yield. Declines in the fair value of investment securities (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the investment security is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, the financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions. In addition, the Corporation considers the intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Corporation has the intent to sell a security; (2) it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) the Corporation does not expect to recover the entire amortized cost basis of the security. If the Corporation intends to sell a security or if it is more likely than not that the Corporation will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If an entity does not intend to sell the security or it is more likely than not that it will not be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in OCI. Declines in value determined to be other-than-temporary are included in investment securities gains (losses), net, on the consolidated statements of income. See Note 3 for additional information on investment securities. |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank Stocks | FHLB and Federal Reserve Bank Stocks The Corporation is required to maintain Federal Reserve stock and FHLB stock as a member of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. See Note 3 for additional information on the FHLB and Federal Reserve Bank Stocks. |
Loans Held for Sale | Loans Held for Sale Residential Loans Held for Sale: Loans held for sale, which consist generally of current production of certain fixed-rate, first-lien residential mortgage loans, are carried at estimated fair value. As a result of holding these loans at fair value, changes in the secondary market is reflected in earnings immediately, as opposed to being dependent upon the timing of sales. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Commercial Loans Held for Sale: Loans held for sale are carried at the lower of cost or estimated fair value. The estimated fair value is based on a discounted cash flow analysis. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances, net of any deferred fees and costs on originated loans. Origination fee income received on loans and amounts representing the estimated direct costs of origination are deferred and amortized to interest income over the life of the loan using the effective interest method. An allowance for loan losses is established for estimated credit losses in the loan portfolio. See Allowance for Loan Losses below for further policy discussion. See also Note 4 for additional information on loans. Nonaccrual Loans: Management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. This determination is based on management's review of current information and other events regarding the borrowers’ ability to repay their obligations. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. Interest income on loans is based on the principal balance outstanding computed using the effective interest method. The accrual of interest income for commercial loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, while the accrual of interest income for consumer loans is discontinued when loans reach specific delinquency levels. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal payments, unless the loan is well secured and in the process of collection. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management’s practice to place such loans on a nonaccrual status immediately, rather than delaying such action until the loans become 90 days past due. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed, amortization of related deferred loan fees or costs is suspended, and income is recorded only to the extent that interest payments are subsequently received in cash and a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments received are applied to loan principal. While a loan is in nonaccrual status, some or all of the cash interest payments received may be treated as interest income on a cash basis as long as the remaining recorded investment in the loan (i.e., after charge off of identified losses, if any) is deemed to be fully collectible. The determination as to the ultimate collectability of the loan's remaining recorded investment must be supported by a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment, including consideration of the borrower’s sustained historical repayment performance and other relevant factors. A nonaccrual loan is returned to accrual status when all delinquent principal and interest payments become current in accordance with the terms of the loan agreement, the borrower has demonstrated a period of sustained repayment performance, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. A sustained period of repayment performance generally would be a minimum of six months. See Note 4 for additional information on loans. |
Troubled Debt Restructurings (Restructured Loans) | Troubled Debt Restructurings (“Restructured Loans”): Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included and treated with all other nonaccrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings, which are considered and accounted for as impaired loans. Generally, restructured loans remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. See Note 4 for additional information on restructured loans. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is a reserve for estimated credit losses on individually evaluated loans determined to be impaired as well as estimated credit losses inherent in the loan portfolio, and is based on quarterly evaluations of the collectability and historical loss experience of loans. Actual credit losses, net of recoveries, are deducted from the allowance for loan losses. A provision for loan losses, which is a charge against earnings, is recorded to bring the allowance for loan losses to a level that, in management’s judgment, is appropriate to absorb probable losses in the loan portfolio. The methodology applied by the Corporation, designed to assess the appropriateness of the allowance for loan losses, is based upon management’s ongoing review and grading of the loan portfolio into criticized loan categories (defined as specific loans warranting either specific allocation, or a criticized status of special mention, substandard, doubtful, or loss). The methodology also focuses on evaluation of several factors, including but not limited to: evaluation of facts and issues related to specific loans, management’s ongoing review and grading of the loan portfolio, consideration of historical loan loss and delinquency experience on each portfolio category, trends in past due and nonaccrual loans, the level of potential problem loans, the risk characteristics of the various classifications of loans, changes in the size and character of the loan portfolio, concentrations of loans to specific borrowers or industries, existing economic conditions, the fair value of underlying collateral, and other qualitative and quantitative factors which could affect potential credit losses. Because each of the criteria used is subject to change, the analysis of the allowance for loan losses is not necessarily indicative of the trend of future loan losses in any particular loan category. The total allowance for loan losses is available to absorb losses from any segment of the loan portfolio. When an individual loan is determined to be impaired, the allowance for loan losses attributable to the loan is allocated based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flows, as well as evaluation of legal options available to the Corporation. The amount of impairment is measured based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the underlying collateral less applicable selling costs, or the observable market price of the loan. If foreclosure is probable or the loan is collateral dependent, impairment is measured using the fair value of the loan’s collateral, less costs to sell. Large groups of homogeneous loans, such as residential mortgage, home equity, and other consumer, are collectively evaluated for impairment. Management believes that the level of the allowance for loan losses is appropriate. While management uses currently available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on newly received appraisals, updated commercial customer financial statements, rapidly deteriorating cash flow, and changes in economic conditions that affect our customers. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require additions to the allowance for loan losses or may require that certain loan balances be charged off or downgraded into criticized loan categories when their credit evaluations differ from those of management based on their judgments about information available to them at the time of their examinations. See Loans above for further policy discussion and see Note 4 for additional information on the allowance for loan losses. |
Other Real Estate Owned | OREO OREO is included in other assets on the consolidated balance sheets and is comprised of property acquired through a foreclosure proceeding or acceptance of a deed-in-lieu of foreclosure, and loans classified as in-substance foreclosure. OREO is recorded at the fair value of the underlying property collateral, less estimated selling costs. This fair value becomes the new cost basis for the foreclosed asset. The initial write-down, if any, will be recorded as a charge off against the allowance for loan losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues and expenses incurred in maintaining such properties, are expensed as incurred. OREO also includes bank premises formerly but no longer used for banking as well as property originally acquired for future expansion but no longer intended to be used for that purpose. Banking premises are transferred at the lower of carrying value or fair value, less estimated selling costs and any write-down is expensed as incurred. |
Allowance for Unfunded Commitments | Allowance for Unfunded Commitments The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. The determination of the appropriate level of the allowance for unfunded commitments is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience and credit risk grading of the loan. Net adjustments to the allowance for unfunded commitments are included in the provision for credit losses on the consolidated statements of income. See Note 4 and Note 16 for additional information on the allowance for unfunded commitments. |
Premises and Equipment and Software | Premises and Equipment and Software Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the related assets or the lease term. Maintenance and repairs are charged to expense as incurred, while additions or major improvements are capitalized and depreciated over the estimated useful lives. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease terms, including extension options which the Corporation has determined are reasonably certain to be exercised, or the estimated useful lives of the improvements. Software, included in other assets on the consolidated balance sheets, is amortized on a |
Leases | Leases The Corporation determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Corporation’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. Leases with original terms of less than 12 months are not capitalized. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Right-of-use assets represent the Corporation’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Corporation’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. The lease term includes options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis and adjustments are made to the right-of-use asset and lease liability if the Corporation is reasonably certain that an option will be exercised and will be expensed on a straight-line basis. Operating and finance leases are included within premises and equipment, net and other assets, respectively, on the consolidated balance sheets. See Note 7 for additional information on leases. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and Other Intangible Assets: The excess of the cost of an acquisition over the fair value of the net assets acquired consists primarily of goodwill, core deposit intangibles, and other identifiable intangibles (primarily related to customer relationships acquired). Core deposit intangibles have estimated finite lives and are amortized on a straight-line basis to expense over a 10-year period. The other intangibles have estimated finite lives and are amortized on a straight-line basis over their expected useful life. The Corporation reviews long-lived assets and certain identifiable intangibles for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in which case an impairment charge would be recorded. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment testing process is conducted by assigning net assets and goodwill to each reporting unit. An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. See Note 5 for additional information on goodwill and other intangible assets. |
Mortgage Servicing Rights | Mortgage Servicing Rights: The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. Upon sale, an MSRs asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. MSRs, when purchased, are initially recorded at fair value. As the Corporation has not elected to subsequently measure any class of servicing assets under the fair value measurement method, the Corporation follows the amortization method. MSRs are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and included in other intangible assets, net, on the consolidated balance sheets. The Corporation periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation |
Income Taxes | Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income taxes, which arise principally from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities, are included in the amounts provided for income taxes. In assessing the realizability of DTAs, management considers whether it is more likely than not that some portion or all of the DTAs will not be realized. The ultimate realization of DTAs is dependent upon the generation of future taxable income and tax planning strategies which will create taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the amount of taxes paid in available carryback years, projected future taxable income, and, if necessary, tax planning strategies in making this assessment. The Corporation files a consolidated federal income tax return and separate or combined state income tax returns. Accordingly, amounts equal to tax benefits of those subsidiaries having taxable federal or state losses or credits are offset by other subsidiaries that incur federal or state tax liabilities. It is the Corporation’s policy to provide for uncertainty in income taxes as a part of income tax expense based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2019 and 2018, the Corporation believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Corporation prevails in matters for which a liability for an unrecognized tax benefit was established or is required to pay amounts in excess of the liability established, the Corporation’s effective tax rate in a given financial statement period may be impacted. See Note 13 for additional information on income taxes. |
Derivative and Hedging Activities | Derivative and Hedging Activities Derivative instruments, including derivative instruments embedded in other contracts, are carried at fair value on the consolidated balance sheets with changes in the fair value recorded to earnings or accumulated other comprehensive income, as appropriate. On the date the derivative contract is entered into, the Corporation designates the derivative as a fair value hedge (i.e., a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e., a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a free-standing derivative instrument. For a derivative designated as a fair value hedge, the changes in the fair value of the derivative instrument and the changes in the fair value of the hedged asset or liability are recognized in current period earnings as an increase or decrease to the carrying value of the hedged item on the balance sheet and in the related income statement account. Amounts within accumulated other comprehensive income are reclassified into earnings in the period the hedged item affects earnings. For a derivative designated as a free-standing derivative instrument, changes in fair value are reported in current period earnings. The free-standing derivative instruments included: interest rate risk management, commodity hedging, and foreign currency exchange solutions. The Corporation is exposed to counterparty credit risk, which is the risk that counterparties to the derivative contracts do not perform as expected. If a counterparty fails to perform, our counterparty credit risk is equal to the amount reported as a derivative asset on our balance sheet. The Corporation uses master netting arrangements to mitigate counterparty credit risk in derivative transactions. To the extent the derivatives are subject to master netting arrangements, the Corporation takes into account the impact of master netting arrangements that allow the Corporation to settle all derivative contracts executed with the same counterparty on a net basis, and to offset the net derivative position with the related cash collateral. In the third quarter of 2019, the Corporation elected to offset derivative transactions with the same counterparty on the consolidated balance sheets when a derivative transaction has a legally enforceable master netting arrangement and when it is eligible for netting. Derivative balances and related cash collateral are presented net on the consolidated balance sheets. Refer to Change in Accounting Policy section within this note for additional discussion. |
Securities Sold Under Agreement to Repurchase | Securities Sold Under Agreement to Repurchase The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. These repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty)) and not as a sale and subsequent repurchase of securities (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). The obligation to repurchase the securities is reflected as a liability within federal funds purchased and securities sold under agreements to repurchase on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. See Notes 9 and 15 for additional information on repurchase agreements. |
Retirement Plan | Retirement Plans The funded status of the retirement plans is recognized as an asset or liability on the consolidated balance sheets and changes in that funded status are recognized in the year in which the changes occur through OCI. Plan assets and benefit obligations are measured as of fiscal year end. The measurement of the projected benefit obligation and pension expense involve actuarial valuation methods and the use of various actuarial and economic assumptions. The Corporation monitors the assumptions and updates them periodically. Due to the long-term nature of the pension plan obligation, actual results may differ significantly from estimations. Such differences are adjusted over time as the assumptions are replaced by facts and values are recalculated. See Note 12 for additional information on the Corporation’s retirement plans. |
Stock-Based Compensation | Stock-Based Compensation The fair value of stock options granted is estimated on the date of grant using a Black-Scholes option pricing model, while the fair value of restricted common stock awards is their fair market value on the date of grant. Performance awards are based on performance goals of earnings per share and total shareholder return with vesting ranging from a minimum of 0% to a maximum of 150% of the target award. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date. The fair values of stock options and restricted stock awards are amortized as compensation expense on a straight-line basis over the vesting period of the grants. Expenses related to stock options and restricted stock awards are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense on the consolidated statements of income. See Note 11 for additional information on stock-based compensation. |
Comprehensive Income | Comprehensive Income Comprehensive income includes all changes in stockholders’ equity during a period, except those resulting from transactions with stockholders. In addition to net income, other components of the Corporation’s comprehensive income include the after tax effect of changes in net unrealized gain / loss on securities available for sale and changes in net actuarial gain / loss on defined benefit postretirement plans. Comprehensive income is reported on the accompanying consolidated statements of changes in stockholder’s equity and consolidated statements of comprehensive income. See Note 22 for additional information on accumulated other comprehensive income (loss). |
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept). As there is no active market for many of the Corporation’s financial instruments, estimates are made using discounted cash flow or other valuation techniques. Inputs into the valuation methods are subjective in nature, involve uncertainties, and require significant judgment and therefore cannot be determined with precision. Accordingly, the derived fair value estimates presented herein are not necessarily indicative of the amounts the Corporation could realize in a current market exchange. Assets and liabilities are categorized into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. See Note 18 for additional information on fair value measurements. Below is a brief description of each fair value level. Level 1 — Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Corporation has the ability to access. Level 2 — Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 — Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. |
Cash and Cash Equivalents | Cash, Cash Equivalents, and Restricted Cash For purposes of the consolidated statements of cash flows, cash, cash equivalents, and restricted cash are considered to include cash and due from banks, interest-bearing deposits in other financial institutions, federal funds sold and securities purchased under agreements to resell. |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock awards) and common stock warrants. See Note 20 for additional information on earnings per common share. |
Change in Accounting Policy | Change in Accounting Policy The Corporation enters into ISDA master netting agreements with a portion of the Corporation’s derivative counterparties. Where legally enforceable, these master netting agreements give the Corporation, in the event of default by the counterparty, the right to liquidate securities and offset cash with the same counterparty. Under ASC 815-10-45-5, payables and receivables in respect of cash collateral received from or paid to a given counterparty can be offset against derivative fair values under a master netting arrangement. GAAP does not permit similar offsetting for security collateral. Prior to the third quarter of 2019, the Corporation elected to account for all derivatives’ fair values and related cash collateral on a gross basis on its consolidated balance sheets. In the third quarter of 2019, the Corporation elected to offset derivative assets and liabilities and cash collateral with the same counterparty where it has a legally enforceable master netting agreement in place. The change had no impact on either earnings or equity. The Corporation believes that this change is a preferable method of accounting as it provides a better reflection of the assets and liabilities on the face of the consolidated balance sheets. Adoption of this change is voluntary and has been adopted retrospectively with all prior periods presented herein being revised for comparability and as required. A reduction of $33 million was reflected between other assets as well as accrued expenses and other liabilities as of December 31, 2018 on the consolidated balance sheets. |
Change in Accounting Estimate | Change in Accounting Estimate During the third quarter of 2019, the Corporation reassessed its estimate of the useful lives of certain fixed assets. The Corporation revised its original useful life estimate from 7 years to 12 years for furniture assets. This is considered a change in accounting estimate, per ASC 250-10, where adjustments should be made prospectively. The impact of this change in accounting estimate for the year ended December 31, 2019 to net income on the consolidated statements of income and premises and equipment, net on the consolidated balance sheets was approximately $915,000. |
Recently Issued Authoritative Accounting Guidance | Recently Issued Authoritative Accounting Guidance Standard Description Date of adoption Effect on financial statements ASU 2019-07 The FASB issued this amendment to align the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. This amendment became effective upon issuance. 3rd Quarter 2019 No material impact on results of operations, financial position and liquidity. ASU 2019-04 The FASB issued this amendment to clarify certain aspects of accounting for credit losses, hedging activities, and financial instruments. Within ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, the amendment allows an entity to designate partial-term fair value hedges of interest rate risk and measure the hedged item by using an assumed maturity, clarifies that an entity can start to amortize the hedged items basis adjustment in a fair value hedge, and it requires entities to disclose for fair value hedging relationships the carrying amounts of hedged assets and liabilities and the cumulative amount of fair value hedge basis adjustments. In addition, it permits a one-time election to reclassify securities that could be used in a hedge from held to maturity to available for sale without risk of tainting the remainder of the held to maturity portfolio. For entities that have adopted the amendments in Update 2017-12 as of the issuance date of this Update, the effective date is as of the beginning of the first annual period beginning after the issuance date of this Update. For those entities, early adoption was permitted, including adoption on any date on or after the issuance of this Update. 3rd Quarter 2019 During the third quarter of 2019, the Corporation made a one-time election to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. ASU-2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract The FASB issued an amendment which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendment is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Entities were required to apply the amendment either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption was permitted. 1st Quarter 2019 The Corporation elected to early adopt this amendment using the prospective approach. No material impact on results of operation, financial position or liquidity. ASU 2018-09 Codification Improvements The FASB issued an amendment which affects a wide variety of Topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update represent changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this Update did not require transition guidance and were effective upon issuance of this Update. However, many of the amendments in this Update did have transition guidance with effective dates for annual periods beginning after December 15, 2018. There are some conforming amendments in this Update that have been made to recently issued guidance that is not yet effective that may require application of the transition and effective date guidance in the original ASU. 1st Quarter 2019 No material impact on results of operations, financial position and liquidity. Standard Description Date of adoption Effect on financial statements ASU 2016-02 Leases (Topic 842) The FASB issued an amendment to provide transparency and comparability among organizations by recognizing lease assets and lease liabilities on the consolidated balance sheets and disclosing key information about leasing arrangements. This amendment required lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This amendment was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities could elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. Early adoption was permitted. ASU 2018-01 permits an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. ASU 2018-10 was issued as improvements and clarifications of ASU 2016-02 were identified. This Update provides clarification on narrow aspects of the previously issued Updates. ASU 2018-11 was issued to provide entities with an additional (and optional) transition method to adopt the new leases standard under ASU 2016-02. ASU 2019-01 was issued to assist in determining the fair value of underlying assets by lessors, address the presentation to the statements of cash flows, and clarify transition disclosures related to Topic 250. 1st Quarter 2019 The Corporation has adopted this amendment utilizing a modified retrospective approach. At adoption, a right-of-use asset and corresponding lease liability were recognized on the consolidated balance sheets for $52 million and $56 million, respectively. See Note 7 for expanded disclosure requirements. Future Accounting Pronouncements The expected impact of accounting pronouncements recently issued or proposed but not yet required to be adopted are discussed in the table below. To the extent that the adoption of new accounting standards materially affect the Corporation’s financial condition, results of operations, or liquidity, the impacts are discussed in the applicable sections of this financial review. Standard Description Date of anticipated adoption Effect on financial statements ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB issued an amendment to replace the current incurred loss impairment methodology. Under the new guidance, entities will be required to measure expected credit losses by utilizing forward-looking information to assess an entity's allowance for credit losses. The guidance also requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities should apply the amendment by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU 2018-19 was issued to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. ASU 2019-04 was issued and provides entities alternatives for measurement of accrued interest receivable, clarifies the steps entities should take when recording the transfer of loans or debt securities between measurement classifications or categories and clarifies that entities should include expected recoveries on financial assets. ASU 2019-05 was issued to provide entities that have certain instruments within the scope of Subtopic 320-20 with an option to irrevocably elect the fair value option in Subtopic 825-10. ASU 2019-11 was issued to clarify and address stakeholders' specific issues relating to expected recoveries on purchased credit deteriorated assets and transition and disclosure relief related to troubled debt restructured loans and accrued interest, respectively. Early adoption is permitted. 1st Quarter 2020 The Corporation has developed a CECL allowance model which calculates reserves over the life of the loan and is largely driven by portfolio characteristics, risk-grading, economic outlook, and other key methodology assumptions. Those assumptions are based upon the existing probability of default and loss given default framework. In addition, analysis derived from the Corporation's stress testing processes have been leveraged in the development of CECL models. The Corporation will utilize a single economic forecast over a 2-year reasonable and supportable forecast period. In the second year the Corporation will use straight-line reversion to historical losses. The Corporation's cross functional team will periodically refine the model as needed. The Corporation expects to incur a $70 to $80 million after-tax charge which will decrease the opening stockholders' equity balance as of January 1, 2020. A majority of the increase is the result of economic uncertainty and unfunded commitments. The total estimated impact equates to a 21 to 24 basis point decrease to the tangible common equity ratio. The Corporation anticipates increases in the allowance for credit losses on longer dated portfolios and decreases in the shorter dated portfolios. The Corporation is in the process of finalizing the review of the most recent model run and finalizing assumptions including qualitative adjustments, probable troubled debt restructurings, and economic forecasts. Standard Description Date of anticipated adoption Effect on financial statements ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement The FASB issued an amendment to add, modify, and remove disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement "Conceptual Framework for Financial Reporting", including the consideration of costs and benefits. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. 1st Quarter 2020 Upon adoption, the Corporation will have a slight change in presentation, and an immaterial impact to its results of operations, financial position, and liquidity. ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The FASB issued an amendment to simplify the subsequent quantitative measurement of goodwill by eliminating step two from the goodwill impairment test. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Entities should apply the amendment prospectively. Early adoption is permitted, including in an interim period, for impairment tests performed after January 1, 2017. 2nd Quarter 2020, consistent with the Corporation's annual impairment test in May of each year The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity. The Corporation has not had to perform a step one quantitative analysis since 2012, which concluded no impairment was necessary. ASU 2018-14 The FASB issued an amendment to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments also added requirements to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendment also clarifies the disclosure requirements in paragraph 715-20-50-3, which states that certain information for defined benefit pension plans should be disclosed. The amendments in this Update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendment is effective for fiscal years ending after December 15, 2020. Entities should apply the amendments in this Update on a retrospective basis to all periods presented. Early adoption is permitted. 1st Quarter 2021 The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. ASU 2019-12 The FASB issued this amendment to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendment also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted. 1st Quarter 2021 The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. |
Acquisition Acquisitions (Table
Acquisition Acquisitions (Tables) | Jun. 14, 2019 | Feb. 01, 2018 |
Business Combinations [Abstract] | ||
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date related to Huntington branch acquisition: ($ in Thousands) Purchase Accounting Adjustments June 14, 2019 Assets Cash and cash equivalents $ — $ 551,250 Loans (1,552) 116,346 Premises and equipment, net 4,800 22,430 Goodwill 7,286 Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) 22,630 22,630 Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) (2,561) 5,263 Others assets $ — 559 Total assets $ 725,764 Liabilities Deposits $ 156 $ 725,173 Other liabilities $ 70 590 Total liabilities $ 725,764 | The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date related to Bank Mutual: ($ in Thousands) Purchase Accounting Adjustments February 1, 2018 Assets Cash and cash equivalents $ — $ 78,052 Investment securities (6,238) 452,867 Federal Home Loan Bank stock, at cost — 20,026 Loans (48,043) 1,875,877 Premises and equipment, net 2,930 42,689 Bank owned life insurance (24) 65,390 Goodwill 175,499 Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) 58,100 58,100 Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) 199 4,848 Others assets $ 7,054 47,158 Total assets $ 2,820,506 Liabilities Deposits $ 2,498 $ 1,840,950 Other borrowings 1,875 431,886 Other liabilities $ 4,487 65,982 Total liabilities $ 2,338,818 Total consideration paid $ 481,688 |
Acquired loans fair value calculation | For loans acquired, the contractual amounts due, expected cash flows to be collected, interest component, and fair value as of the respective acquisition dates were as follows: February 1, 2018 ($ in Thousands) Acquired Performing Loans Acquired Impaired Loans Total Contractual required principal and interest at acquisition $ 1,899,932 $ 23,988 $ 1,923,920 Contractual cash flows not expected to be collected (nonaccretable discount) — (1,866) (1,866) Expected cash flows at acquisition 1,899,932 22,122 1,922,054 Interest component of expected cash flows (accretable discount) (41,324) (4,853) (46,177) Fair value of acquired loans $ 1,858,608 $ 17,269 $ 1,875,877 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities available for sale | The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2019 were as follows: ($ in Thousands) Amortized Gross Gross Fair Value Investment securities available for sale Obligations of state and political subdivisions (municipal securities) (a) $ 529,908 $ 16,269 $ (18) $ 546,160 Residential mortgage-related securities FNMA / FHLMC 131,158 1,562 (59) 132,660 GNMA 982,941 3,887 (1,689) 985,139 Commercial mortgage-related securities FNMA / FHLMC 19,929 1,799 — 21,728 GNMA 1,314,836 7,403 (12,032) 1,310,207 FFELP asset-backed securities 270,178 — (6,485) 263,693 Other debt securities 3,000 — — 3,000 Total investment securities available for sale $ 3,251,950 $ 30,920 $ (20,284) $ 3,262,586 Investment securities held to maturity U.S. Treasury securities $ 999 $ 19 $ — $ 1,018 Obligations of state and political subdivisions (municipal securities) (a) 1,418,569 69,775 (1,118) 1,487,227 Residential mortgage-related securities FNMA / FHLMC 81,676 1,759 (15) 83,420 GNMA 269,523 1,882 (1,108) 270,296 GNMA commercial mortgage-related securities 434,317 6,308 (6,122) 434,503 Total investment securities held to maturity $ 2,205,083 $ 79,744 $ (8,363) $ 2,276,465 (a) As permitted by ASU 2019-04, which was adopted during the third quarter of 2019, the Corporation made a one-time election during the third quarter of 2019 to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows: ($ in Thousands) Amortized Gross Gross Fair Value Investment securities available for sale U.S. Treasury securities $ 1,000 $ — $ (1) $ 999 Residential mortgage-related securities: FNMA / FHLMC 296,296 2,466 (3,510) 295,252 GNMA 2,169,943 473 (41,885) 2,128,531 Private-label 1,007 — (4) 1,003 GNMA commercial mortgage-related securities 1,273,309 — (52,512) 1,220,797 FFELP asset-backed securities 297,347 711 (698) 297,360 Other debt securities 3,000 — — 3,000 Total investment securities available for sale $ 4,041,902 $ 3,649 $ (98,610) $ 3,946,941 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) $ 1,790,683 $ 8,255 $ (15,279) $ 1,783,659 Residential mortgage-related securities FNMA / FHLMC 92,788 169 (1,795) 91,162 GNMA 351,606 1,611 (8,181) 345,035 GNMA commercial mortgage-related securities 505,434 7,559 (22,579) 490,414 Total investment securities held to maturity $ 2,740,511 $ 17,593 $ (47,835) $ 2,710,271 |
Investment securities held to maturity | The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2019 were as follows: ($ in Thousands) Amortized Gross Gross Fair Value Investment securities available for sale Obligations of state and political subdivisions (municipal securities) (a) $ 529,908 $ 16,269 $ (18) $ 546,160 Residential mortgage-related securities FNMA / FHLMC 131,158 1,562 (59) 132,660 GNMA 982,941 3,887 (1,689) 985,139 Commercial mortgage-related securities FNMA / FHLMC 19,929 1,799 — 21,728 GNMA 1,314,836 7,403 (12,032) 1,310,207 FFELP asset-backed securities 270,178 — (6,485) 263,693 Other debt securities 3,000 — — 3,000 Total investment securities available for sale $ 3,251,950 $ 30,920 $ (20,284) $ 3,262,586 Investment securities held to maturity U.S. Treasury securities $ 999 $ 19 $ — $ 1,018 Obligations of state and political subdivisions (municipal securities) (a) 1,418,569 69,775 (1,118) 1,487,227 Residential mortgage-related securities FNMA / FHLMC 81,676 1,759 (15) 83,420 GNMA 269,523 1,882 (1,108) 270,296 GNMA commercial mortgage-related securities 434,317 6,308 (6,122) 434,503 Total investment securities held to maturity $ 2,205,083 $ 79,744 $ (8,363) $ 2,276,465 (a) As permitted by ASU 2019-04, which was adopted during the third quarter of 2019, the Corporation made a one-time election during the third quarter of 2019 to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows: ($ in Thousands) Amortized Gross Gross Fair Value Investment securities available for sale U.S. Treasury securities $ 1,000 $ — $ (1) $ 999 Residential mortgage-related securities: FNMA / FHLMC 296,296 2,466 (3,510) 295,252 GNMA 2,169,943 473 (41,885) 2,128,531 Private-label 1,007 — (4) 1,003 GNMA commercial mortgage-related securities 1,273,309 — (52,512) 1,220,797 FFELP asset-backed securities 297,347 711 (698) 297,360 Other debt securities 3,000 — — 3,000 Total investment securities available for sale $ 4,041,902 $ 3,649 $ (98,610) $ 3,946,941 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) $ 1,790,683 $ 8,255 $ (15,279) $ 1,783,659 Residential mortgage-related securities FNMA / FHLMC 92,788 169 (1,795) 91,162 GNMA 351,606 1,611 (8,181) 345,035 GNMA commercial mortgage-related securities 505,434 7,559 (22,579) 490,414 Total investment securities held to maturity $ 2,740,511 $ 17,593 $ (47,835) $ 2,710,271 |
Amortized cost and fair values of investment securities available for sale and held to maturity by contractual maturity | Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of investment securities available for sale and held to maturity at December 31, 2019, are shown below: Available for Sale Held to Maturity ($ in Thousands) Amortized Fair Amortized Fair Due in one year or less $ 2,795 $ 2,800 $ 29,033 $ 29,218 Due after one year through five years 32,399 32,901 82,023 83,245 Due after five years through ten years 317,292 326,361 136,138 140,704 Due after ten years 180,422 187,098 1,172,373 1,235,077 Total debt securities 532,908 549,160 1,419,568 1,488,245 Residential mortgage-related securities FNMA / FHLMC 131,158 132,660 81,676 83,420 GNMA 982,941 985,139 269,523 270,296 Commercial mortgage-related securities FNMA / FHLMC 19,929 21,728 — — GNMA 1,314,836 1,310,207 434,317 434,503 FFELP asset-backed securities 270,178 263,693 — — Total investment securities $ 3,251,950 $ 3,262,586 $ 2,205,083 $ 2,276,465 Ratio of Fair Value to Amortized Cost 100.3 % 103.2 % |
Realized gains and losses and proceeds from sale | Investment securities gains (losses), net includes proceeds from the sale of investment securities as well as any applicable write-ups or write-downs of investment securities. The proceeds from the sale and write-up of investment securities for each of the three years ended December 31 are shown below. There were no other-than-temporary impairment write-downs on investment securities for 2019, 2018, or 2017. ($ in Thousands) 2019 2018 2017 Gross gains on available for sale securities $ 6,374 $ 1,954 $ — Gross gains on held to maturity securities — — 439 Total gains 6,374 1,954 439 Gross (losses) on available for sale securities (13,861) (3,938) — Gross (losses) on held to maturity securities — — (5) Total (losses) (13,861) (3,938) (5) Write-up of equity securities without readily determinable fair values 13,444 — — Investment securities gains (losses), net $ 5,957 $ (1,985) $ 434 Proceeds from sales of investment securities $ 1,367,476 $ 601,130 $ 18,467 |
Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length | The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at December 31, 2019: Less than 12 months 12 months or more Total ($ in Thousands) Number Unrealized Fair Number Unrealized Fair Unrealized (Losses) Fair Investment securities available for sale Obligations of state and political subdivisions (municipal securities) 4 $ (18) 1,225 — $ — $ — $ (18) $ 1,225 Residential mortgage-related securities FNMA / FHLMC — — — 4 (59) 34,807 (59) 34,807 GNMA 18 (924) 322,394 3 (766) 79,461 (1,689) 401,856 GNMA commercial mortgage-related securities 22 (810) 258,218 42 (11,222) 621,307 (12,032) 879,524 FFELP asset-backed securities 19 (6,092) 250,780 2 (393) 12,913 (6,485) 263,693 Other debt securities 2 — 2,000 — — — — 2,000 Total 65 $ (7,843) $ 834,616 51 $ (12,440) $ 748,487 $ (20,284) $ 1,583,104 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) 52 $ (1,105) $ 77,562 6 $ (13) $ 2,378 $ (1,118) $ 79,940 Residential mortgage-related securities FNMA / FHLMC 1 (6) 1,242 1 (9) 833 (15) 2,075 GNMA 12 (1,059) 187,261 8 (49) 6,587 (1,108) 193,849 GNMA commercial mortgage-related securities 2 (29) 26,202 21 (6,093) 357,733 (6,122) 383,935 Total 67 $ (2,199) $ 292,267 36 $ (6,164) $ 367,532 $ (8,363) $ 659,799 For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018: Less than 12 months 12 months or more Total ($ in Thousands) Number Unrealized Fair Number Unrealized Fair Unrealized Fair Investment securities available for sale U.S. Treasury securities — $ — $ — 1 $ (1) $ 999 $ (1) $ 999 Residential mortgage-related securities FNMA / FHLMC 15 (31) 17,993 17 (3,479) 189,405 (3,510) 207,398 GNMA 12 (4,529) 452,183 79 (37,355) 1,598,159 (41,885) 2,050,342 Private-label 1 (4) 1,003 — — — (4) 1,003 GNMA commercial mortgage-related securities — — — 93 (52,512) 1,220,854 (52,512) 1,220,854 FFELP asset-backed securities 13 (698) 142,432 — — — (698) 142,432 Total 41 $ (5,262) $ 613,612 190 $ (93,347) $ 3,009,417 $ (98,610) $ 3,623,028 Investment securities held to maturity Obligations of state and political subdivisions (municipal securities) 272 $ (2,860) $ 313,212 752 $ (12,419) $ 509,374 $ (15,279) $ 822,586 Residential mortgage-related securities FNMA / FHLMC 13 (780) 57,896 22 (1,015) 28,888 (1,795) 86,784 GNMA 13 (414) 19,822 66 (7,767) 320,387 (8,181) 340,209 GNMA commercial mortgage-related securities — — — 25 (22,579) 490,414 (22,579) 490,414 Total 298 $ (4,053) $ 390,929 865 $ (43,780) $ 1,349,063 $ (47,835) $ 1,739,992 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loan composition | Loans at December 31 are summarized below: ($ in Thousands) 2019 2018 Commercial and industrial $ 7,354,594 $ 7,398,044 Commercial real estate - owner occupied 911,265 920,443 Commercial and business lending 8,265,858 8,318,487 Commercial real estate - investor 3,794,517 3,751,554 Real estate construction 1,420,900 1,335,031 Commercial real estate lending 5,215,417 5,086,585 Total commercial 13,481,275 13,405,072 Residential mortgage 8,136,980 8,277,712 Home equity 852,025 894,473 Other consumer 351,159 363,171 Total consumer 9,340,164 9,535,357 Total loans (a)(b) $ 22,821,440 $ 22,940,429 (a) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages as well as $33 million of nonaccrual and performing restructured loans. |
Loans to Related Parties | The Corporation has granted loans to its directors, executive officers, or their related interests. These loans were made on substantially the same terms, including rates and collateral, as those prevailing at the time for comparable transactions with other unrelated customers, and do not involve more than a normal risk of collection. These loans to related parties are summarized below: ($ in Thousands) 2019 2018 Balance at beginning of year $ 17,831 $ 20,260 New loans 3,673 3,076 Repayments (8,053) (5,017) Change due to status of executive officers and directors 3,320 (489) Balance at end of year $ 16,772 $ 17,831 |
Commercial and consumer loans by credit quality indicator | The following table presents commercial and consumer loans by credit quality indicator at December 31, 2019: ($ in Thousands) Pass Special Mention Potential Problem Nonaccrual Total Commercial and industrial $ 7,118,448 $ 79,525 $ 110,308 $ 46,312 $ 7,354,594 Commercial real estate - owner occupied 866,193 25,115 19,889 67 911,265 Commercial and business lending 7,984,641 104,641 130,197 46,380 8,265,858 Commercial real estate - investor 3,620,785 139,873 29,449 4,409 3,794,517 Real estate construction 1,420,374 33 — 493 1,420,900 Commercial real estate lending 5,041,159 139,906 29,449 4,902 5,215,417 Total commercial 13,025,800 244,547 159,646 51,282 13,481,275 Residential mortgage 8,077,122 563 1,451 57,844 8,136,980 Home equity 841,757 1,164 — 9,104 852,025 Other consumer 350,260 748 — 152 351,159 Total consumer 9,269,139 2,475 1,451 67,099 9,340,164 Total loans (a) $ 22,294,939 $ 247,022 $ 161,097 $ 118,380 $ 22,821,440 (a) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages. In addition, the Corporation sold $33 million of residential mortgages and home equity loans, of which $21 million were pass loans and $12 million were nonaccrual loans. The following table presents commercial and consumer loans by credit quality indicator at December 31, 2018 : ($ in Thousands) Pass Special Mention Potential Problem Nonaccrual Total Commercial and industrial $ 7,162,370 $ 78,075 $ 116,578 $ 41,021 $ 7,398,044 Commercial real estate - owner occupied 854,265 6,257 55,964 3,957 920,443 Commercial and business lending 8,016,635 84,332 172,542 44,978 8,318,487 Commercial real estate - investor 3,653,642 28,479 67,481 1,952 3,751,554 Real estate construction 1,321,447 8,771 3,834 979 1,335,031 Commercial real estate lending 4,975,089 37,249 71,315 2,931 5,086,585 Total commercial 12,991,724 121,582 243,856 47,909 13,405,072 Residential mortgage 8,203,729 434 5,975 67,574 8,277,712 Home equity 880,808 1,223 103 12,339 894,473 Other consumer 362,343 749 — 79 363,171 Total consumer 9,446,881 2,406 6,078 79,992 9,535,357 Total loans $ 22,438,605 $ 123,988 $ 249,935 $ 127,901 $ 22,940,429 |
Summarized details of Loans by past due status | The following table presents loans by past due status at December 31, 2019: ($ in Thousands) Current 30-59 Days 60-89 Days 90 Days or More Nonaccrual (a) Total Commercial and industrial $ 7,307,118 $ 576 $ 245 $ 342 $ 46,312 $ 7,354,594 Commercial real estate - owner occupied 909,828 1,369 — — 67 911,265 Commercial and business lending 8,216,947 1,945 245 342 46,380 8,265,858 Commercial real estate - investor 3,788,296 1,812 — — 4,409 3,794,517 Real estate construction 1,420,310 64 33 — 493 1,420,900 Commercial real estate lending 5,208,606 1,876 33 — 4,902 5,215,417 Total commercial 13,425,552 3,821 278 342 51,282 13,481,275 Residential mortgage 8,069,863 8,749 525 — 57,844 8,136,980 Home equity 837,274 4,483 1,164 — 9,104 852,025 Other consumer 347,007 1,135 949 1,917 152 351,159 Total consumer 9,254,144 14,366 2,638 1,917 67,099 9,340,164 Total loans (b) $ 22,679,696 $ 18,188 $ 2,916 $ 2,259 $ 118,380 $ 22,821,440 (a) Of the total nonaccrual loans, $48 million, or 41%, were current with respect to payment at December 31, 2019. (b) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages. In addition, the Corporation sold $33 million of residential mortgages and home equity loans, of which $21 million were accruing current loans, $12 million were nonaccrual loans, and approximately $200,000 were 30-89 days past due accruing loans. The following table presents loans by past due status at December 31, 2018: ($ in Thousands) Current 30-59 Days 60-89 Days 90 Days or More Nonaccrual (a) Total Commercial and industrial $ 7,356,187 $ 187 $ 338 $ 311 $ 41,021 $ 7,398,044 Commercial real estate - owner occupied 913,787 2,580 119 — 3,957 920,443 Commercial and business lending 8,269,974 2,767 457 311 44,978 8,318,487 Commercial real estate - investor 3,745,835 2,954 813 — 1,952 3,751,554 Real estate construction 1,333,722 330 — — 979 1,335,031 Commercial real estate lending 5,079,557 3,284 813 — 2,931 5,086,585 Total commercial 13,349,531 6,051 1,270 311 47,909 13,405,072 Residential mortgage 8,200,432 9,272 434 — 67,574 8,277,712 Home equity 876,085 4,826 1,223 — 12,339 894,473 Other consumer 358,970 1,401 868 1,853 79 363,171 Total consumer 9,435,487 15,499 2,525 1,853 79,992 9,535,357 Total loans $ 22,785,019 $ 21,550 $ 3,795 $ 2,165 $ 127,901 $ 22,940,429 (a) Of the total nonaccrual loans, $74 million, or 58%, were current with respect to payment at December 31, 2018. |
Summarized details of impaired Loans | The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $2 million of purchased credit-impaired loans, at December 31, 2019: ($ in Thousands) Recorded Unpaid Related Average Interest Loans with a related allowance Commercial and industrial $ 47,249 $ 63,346 $ 12,010 $ 45,290 $ 1,832 Commercial real estate - owner occupied 1,676 1,682 19 1,774 88 Commercial and business lending 48,924 65,028 12,029 47,064 1,919 Commercial real estate - investor 928 2,104 15 950 15 Real estate construction 477 559 67 494 30 Commercial real estate lending 1,405 2,663 82 1,445 45 Total commercial 50,329 67,691 12,111 48,509 1,965 Residential mortgage 21,450 22,625 2,740 23,721 856 Home equity 3,076 3,468 1,190 3,756 191 Other consumer 1,247 1,249 125 1,250 1 Total consumer 25,773 27,342 4,055 28,726 1,047 Total loans $ 76,102 $ 95,033 $ 16,165 $ 77,235 $ 3,012 Loans with no related allowance Commercial and industrial $ 14,787 $ 33,438 $ — $ 20,502 $ 63 Commercial real estate - owner occupied — — — — — Commercial and business lending 14,787 33,438 — 20,502 63 Commercial real estate - investor 3,705 3,705 — 3,980 159 Real estate construction — — — — — Commercial real estate lending 3,705 3,705 — 3,980 159 Total commercial 18,491 37,142 — 24,482 222 Residential mortgage 14,104 14,461 — 10,962 373 Home equity 1,346 1,383 — 1,017 21 Other consumer — — — — — Total consumer 15,450 15,845 — 11,979 394 Total loans $ 33,941 $ 52,987 $ — $ 36,462 $ 616 Total Commercial and industrial $ 62,035 $ 96,784 $ 12,010 $ 65,792 $ 1,895 Commercial real estate - owner occupied 1,676 1,682 19 1,774 88 Commercial and business lending 63,711 98,466 12,029 67,566 1,982 Commercial real estate - investor 4,633 5,808 15 4,931 174 Real estate construction 477 559 67 494 30 Commercial real estate lending 5,110 6,367 82 5,425 204 Total commercial 68,820 104,833 12,111 72,991 2,186 Residential mortgage 35,554 37,087 2,740 34,683 1,229 Home equity 4,422 4,851 1,190 4,773 211 Other consumer 1,247 1,249 125 1,250 1 Total consumer 41,223 43,187 4,055 40,706 1,441 Total loans (a) $ 110,043 $ 148,020 $ 16,165 $ 113,697 $ 3,628 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 63% of the unpaid principal balance at December 31, 2019. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018: ($ in Thousands) Recorded Unpaid Related Average Interest Loans with a related allowance Commercial and industrial $ 40,747 $ 42,131 $ 5,721 $ 52,461 $ 1,167 Commercial real estate - owner occupied 2,080 2,087 24 2,179 104 Commercial and business lending 42,827 44,218 5,745 54,640 1,271 Commercial real estate - investor 799 805 28 827 38 Real estate construction 510 589 75 533 32 Commercial real estate lending 1,309 1,394 103 1,360 70 Total commercial 44,136 45,612 5,848 56,000 1,341 Residential mortgage 41,691 45,149 6,023 42,687 1,789 Home equity 9,601 10,539 3,312 10,209 566 Other consumer 1,181 1,183 121 1,184 3 Total consumer 52,473 56,871 9,456 54,080 2,358 Total loans $ 96,609 $ 102,483 $ 15,304 $ 110,079 $ 3,699 Loans with no related allowance Commercial and industrial $ 22,406 $ 45,024 $ — $ 21,352 $ (344) Commercial real estate - owner occupied 3,772 4,823 — 3,975 — Commercial and business lending 26,178 49,847 — 25,327 (344) Commercial real estate - investor 1,585 2,820 — 980 68 Real estate construction — — — — — Commercial real estate lending 1,585 2,820 — 980 68 Total commercial 27,763 52,667 — 26,307 (276) Residential mortgage 8,795 9,074 — 8,790 203 Home equity 523 542 — 530 — Other consumer — — — — — Total consumer 9,318 9,616 — 9,320 203 Total loans $ 37,081 $ 62,283 $ — $ 35,627 $ (73) Total Commercial and industrial $ 63,153 $ 87,155 $ 5,721 $ 73,813 $ 823 Commercial real estate - owner occupied 5,852 6,910 24 6,154 104 Commercial and business lending 69,005 94,065 5,745 79,967 927 Commercial real estate - investor 2,384 3,625 28 1,807 106 Real estate construction 510 589 75 533 32 Commercial real estate lending 2,894 4,214 103 2,340 138 Total commercial 71,899 98,279 5,848 82,307 1,065 Residential mortgage 50,486 54,223 6,023 51,477 1,992 Home equity 10,124 11,081 3,312 10,739 566 Other consumer 1,181 1,183 121 1,184 3 Total consumer 61,791 66,487 9,456 63,400 2,561 Total loans (a) $ 133,690 $ 164,766 $ 15,304 $ 145,707 $ 3,626 |
Nonaccrual and performing restructured loans | The following table presents nonaccrual and performing restructured loans by loan portfolio: December 31, 2019 December 31, 2018 December 31, 2017 ($ in Thousands) Performing Nonaccrual Restructured Loans (a) Performing Nonaccrual Restructured Loans (a) Performing Nonaccrual Restructured Loans (a) Commercial and industrial $ 16,678 $ 7,376 $ 25,478 $ 249 $ 30,047 $ 1,776 Commercial real estate - owner occupied 1,676 — 2,080 — 3,989 — Commercial real estate - investor 293 — 799 933 14,389 — Real estate construction 298 179 311 198 310 157 Residential mortgage 3,955 13,035 16,036 22,279 17,068 18,991 Home equity 1,896 1,904 7,385 2,627 7,705 2,537 Other consumer 1,246 1 1,174 6 1,110 25 Total restructured loans (b) $ 26,041 $ 22,494 $ 53,263 $ 26,292 $ 74,618 $ 23,486 (a) Nonaccrual restructured loans have been included within nonaccrual loans. (b) During the third quarter of 2019, the Corporation sold $21 million of performing restructured loans, of which $18 million were residential mortgages and $3 million were home equity loans. In addition, the Corporation sold $7 million of nonaccrual restructured residential mortgage loans during the third quarter of 2019. |
Summary of restructured loans | The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio, the recorded investment, and unpaid principal balance: Years Ended December 31, 2019 2018 2017 ($ in Thousands) Number Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded Investment (a) Unpaid Principal Balance (b) Commercial and industrial 6 $ 7,588 $ 7,703 5 $ 1,315 $ 1,330 8 $ 3,991 $ 6,339 Commercial real estate - owner occupied — — — — — — 2 690 690 Commercial real estate - investor — — — 2 1,393 1,472 — — — Real estate construction 1 77 77 1 78 80 — — — Residential mortgage 53 7,436 7,517 41 6,977 7,210 45 4,238 4,364 Home equity 24 831 845 34 1,649 1,681 22 507 507 Other consumer 1 8 8 3 17 19 — — — Total 85 $ 15,940 $ 16,150 86 $ 11,429 $ 11,792 77 $ 9,426 $ 11,900 (a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment. |
Troubled debt restructurings subsequent redefault | The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the year ended December 31, 2019, 2018, and 2017, respectively, as well as the recorded investment in these restructured loans as of December 31, 2019, 2018, and 2017, respectively: Years Ended December 31, 2019 2018 2017 ($ in Thousands) Number of Recorded Number of Recorded Number of Recorded Commercial and industrial — $ — 3 $ — 2 $ — Commercial real estate — investor 1 461 — — — — Residential mortgage 38 5,630 20 3,553 36 3,137 Home equity 27 868 32 1,688 27 735 Other consumer — — — — 1 7 Total 66 $ 6,959 55 $ 5,241 66 $ 3,879 |
Changes in the allowance for loan losses by portfolio segment | A summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2019, is as follows: ($ in Thousands) Commercial Commercial Commercial Real estate Residential Home Other Total December 31, 2018 $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Charge offs (63,315) (222) — (60) (3,322) (1,846) (5,548) (74,313) Recoveries 11,875 2,795 31 302 692 2,599 868 19,161 Net charge offs (51,441) 2,573 31 243 (2,630) 753 (4,681) (55,152) Provision for loan losses 33,738 (1,543) (361) (3,568) (6,005) (9,093) 5,332 18,500 December 31, 2019 $ 91,133 $ 10,284 $ 40,514 $ 24,915 $ 16,960 $ 10,926 $ 6,639 $ 201,371 Allowance for loan losses Individually evaluated for impairment $ 12,010 $ 19 $ 15 $ 67 $ 2,740 $ 1,190 $ 125 $ 16,165 Collectively evaluated for impairment 79,123 10,265 40,498 24,848 14,220 9,737 6,514 185,205 Total allowance for loan losses $ 91,133 $ 10,284 $ 40,514 $ 24,915 $ 16,960 $ 10,926 $ 6,639 $ 201,371 Loans Individually evaluated for impairment $ 62,035 $ 1,676 $ 4,633 $ 477 $ 35,554 $ 4,422 $ 1,247 $ 110,043 Collectively evaluated for impairment 7,292,217 909,010 3,789,755 1,420,416 8,100,958 847,577 349,912 22,709,845 Acquired and accounted for under ASC 310-30 (a) 342 579 129 7 469 26 — 1,552 Total loans $ 7,354,594 $ 911,265 $ 3,794,517 $ 1,420,900 $ 8,136,980 $ 852,025 $ 351,159 $ 22,821,440 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2018, is as follows: ($ in Thousands) Commercial Commercial Commercial Real estate Residential Home Other Total December 31, 2017 $ 123,068 $ 10,352 $ 41,059 $ 34,370 $ 29,607 $ 22,126 $ 5,298 $ 265,880 Charge offs (30,837) (1,363) (7,914) (298) (1,627) (3,236) (5,261) (50,536) Recoveries 13,714 639 668 446 1,271 2,628 812 20,179 Net charge offs (17,123) (724) (7,246) 149 (355) (608) (4,448) (30,358) Provision for loan losses 2,890 (373) 7,031 (6,279) (3,657) (2,252) 5,138 2,500 December 31, 2018 $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Allowance for loan losses Individually evaluated for impairment $ 5,721 $ 24 $ 28 $ 75 $ 6,023 $ 3,312 $ 121 $ 15,304 Collectively evaluated for impairment 103,114 9,231 40,816 28,165 19,572 15,954 5,867 222,719 Total allowance for loan losses $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Loans Individually evaluated for impairment $ 63,153 $ 5,852 $ 2,384 $ 510 $ 50,486 $ 10,124 $ 1,181 $ 133,690 Collectively evaluated for impairment 7,331,898 913,708 3,748,883 1,334,500 8,226,642 884,266 361,990 22,801,887 Acquired and accounted for under ASC 310-30 (a) 2,994 883 287 21 584 83 — 4,853 Total loans $ 7,398,044 $ 920,443 $ 3,751,554 $ 1,335,031 $ 8,277,712 $ 894,473 $ 363,171 $ 22,940,429 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." |
Changes in the allowance for loan losses by oil and gas segment | The following table provides a summary of the changes in allowance for loan losses in the Corporation's oil and gas portfolio at December 31, 2019 and December 31, 2018: Years Ended December 31, ($ in Millions) 2019 2018 Balance at beginning of period $ 12 $ 27 Charge offs (50) (24) Recoveries 5 6 Net Charge offs (44) (17) Provision for loan losses 45 2 Balance at end of period $ 12 $ 12 Allowance for loan losses Individually evaluated for impairment $ 3 $ — Collectively evaluated for impairment 9 12 Total allowance for loan losses $ 12 $ 12 Oil & Gas Allowance for loan losses to Total Oil & Gas Loans 2.56 % 1.62 % Loans Individually evaluated for impairment $ 23 $ 22 Collectively evaluated for impairment 460 725 Total loans $ 484 $ 747 |
Changes in the allowance for unfunded commitments | A summary of the changes in the allowance for unfunded commitments was as follows: Years Ended December 31, ($ in Thousands) 2019 2018 2017 Allowance for Unfunded Commitments Balance at beginning of period $ 24,336 $ 24,400 $ 25,400 Provision for unfunded commitments (2,500) (2,500) (1,000) Amount recorded at acquisition 70 2,436 — Balance at end of period $ 21,907 $ 24,336 $ 24,400 |
Changes In Accretable Yield For Purchased Credit Impaired | Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the years ended December 31, 2019, and 2018 respectively: ($ in Thousands) Year Ended December 31, 2019 Year Ended December 31, 2018 Changes in Accretable Yield Balance at beginning of period $ 1,482 $ — Purchases — 4,853 Accretion (940) (4,954) Net reclassification from non-accretable yield 23 1,605 Other (a) — (22) Balance at end of period $ 568 $ 1,482 (a) Primarily includes charge offs which are accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of core deposit intangibles and other intangibles | The Corporation has other intangible assets that are amortized, consisting of CDIs, other intangibles (primarily related to customer relationships acquired in connection with the Corporation’s insurance agency acquisitions), and MSRs. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows: ($ in Thousands) 2019 2018 2017 Core deposit intangibles Gross carrying amount $ 80,730 $ 58,100 $ 4,385 Accumulated amortization (12,456) (5,326) (4,385) Net book value $ 68,274 $ 52,774 $ — Additions during the period $ 22,630 $ 58,100 $ — Amortization during the year $ 7,130 $ 5,326 $ 112 Other intangibles Gross carrying amount $ 44,887 $ 44,931 $ 34,572 Reductions due to sale (217) (43) — Accumulated amortization (24,643) (21,825) (18,992) Net book value $ 20,027 $ 23,062 $ 15,580 Additions during the period $ — $ 10,359 $ 2,162 Amortization during the year $ 2,818 $ 2,833 $ 1,847 |
Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance | A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance is as follows: ($ in Thousands) 2019 2018 2017 Mortgage servicing rights Mortgage servicing rights at beginning of year $ 68,433 $ 59,168 $ 62,085 Additions from acquisition — 8,136 — Additions 11,606 10,722 7,167 Amortization (12,432) (9,594) (10,084) Mortgage servicing rights at end of year $ 67,607 $ 68,433 $ 59,168 Valuation allowance at beginning of year (239) (784) (609) (Additions) recoveries, net (63) 545 (175) Valuation allowance at end of year (302) (239) (784) Mortgage servicing rights, net $ 67,306 $ 68,193 $ 58,384 Fair value of mortgage servicing rights $ 72,532 $ 81,012 $ 64,387 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 8,484,977 $ 8,600,983 $ 7,646,846 Mortgage servicing rights, net to servicing portfolio 0.79 % 0.79 % 0.76 % Mortgage servicing rights expense (a) $ 12,494 $ 9,049 $ 10,259 (a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income. |
Summary of estimated future amortization expense | The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2019. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets: ($ in Thousands) Core Deposit Intangibles Other Intangibles Mortgage Servicing Rights Year ending December 31, 2020 $ 8,073 $ 2,681 $ 10,628 2021 8,073 2,656 11,481 2022 8,073 2,633 9,576 2023 8,073 2,614 7,967 2024 8,073 2,594 6,621 Beyond 2024 27,909 6,850 21,336 Total Estimated Amortization Expense $ 68,274 $ 20,027 $ 67,607 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment at December 31 is as follows: 2019 2018 ($ in Thousands) Estimated Cost Accumulated Net Book Net Book Land — $ 69,649 $ — $ 69,649 $ 67,737 Land improvements 3 – 15 years 17,868 8,513 9,355 7,212 Buildings and improvements 5 – 39 years 394,191 163,833 230,358 212,536 Computers 3 – 5 years 47,291 34,049 13,242 12,392 Furniture, fixtures and other equipment 3 – 15 years 176,023 122,681 53,342 49,891 Operating leases — 53,982 8,602 $ 45,381 $ — Leasehold improvements 3 – 15 years 36,842 22,884 13,958 13,457 Total premises and equipment $ 795,846 $ 360,562 $ 435,284 $ 363,225 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Operating and finance lease costs and cash flows resulting from these leases are presented below: ($ in Thousands) Twelve Months Ended December 31, 2019 Operating Lease Costs $ 11,006 Finance Lease Costs 36 Operating Lease Cash Flows 11,305 Finance Lease Cash Flows 35 |
Assets And Liabilities, Lessee [Table Text Block] | The lease classifications on the consolidated balance sheets were as follows: December 31, 2019 ($ in Thousands) Amount Consolidated Balance Sheets Category Operating lease right-of-use asset $ 45,381 Premises and equipment Finance lease right-of-use asset 2,188 Other assets Operating lease liability 49,292 Accrued expenses and other liabilities Finance lease liability 2,209 Other long-term funding |
Lessee, Operating Lease, Information [Table Text Block] | The lease payment obligations, weighted-average remaining lease term, and weighted-average discount rate were as follows: December 31, 2019 ($ in Thousands) Lease payments Weighted-average lease term (in years) Weighted-average discount rate Operating leases Equipment $ 46 0.83 2.72 % Retail and corporate offices 48,940 6.49 3.34 % Land 6,594 9.57 3.21 % Total operating leases $ 55,580 6.83 3.32 % Finance leases Land $ 4,827 39.67 3.99 % Total finance leases $ 4,827 39.67 3.99 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows: ($ in Thousands) Operating Leases Finance Leases Total Leases Twelve Months Ending December 31, 2020 $ 10,662 $ 85 $ 10,747 2021 10,136 85 10,221 2022 7,854 85 7,939 2023 5,625 85 5,710 2024 4,988 88 5,076 Beyond 2024 16,316 4,398 20,714 Total lease payments $ 55,580 $ 4,827 $ 60,407 Less: interest 6,288 2,617 8,905 Present value of lease payments $ 49,292 $ 2,209 $ 51,501 |
Lessee, Operating Lease, Disclosure [Table Text Block] | The approximate minimum annual rental payments and rental receipts under noncancelable agreements and leases with remaining terms in excess of one year are as follows: ($ in Thousands) Payments Receipts 2020 $ 9,876 $ 3,189 2021 9,976 2,903 2022 7,822 2,127 2023 5,977 1,723 2024 5,315 1,583 Thereafter 21,393 8,081 Total $ 60,359 $ 19,606 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits by type | The distribution of deposits at December 31 is as follows: ($ in Thousands) 2019 2018 Noninterest-bearing demand $ 5,450,709 $ 5,698,530 Savings 2,735,036 2,012,841 Interest-bearing demand 5,329,717 5,336,952 Money market 7,640,798 9,033,669 Brokered CDs 5,964 192,234 Other time 2,616,839 2,623,167 Total deposits $ 23,779,064 $ 24,897,393 |
Time deposits by maturity | Aggregate annual maturities of all time deposits at December 31, 2019, are as follows: Maturities During Year Ending December 31, ($ in Thousands) 2020 $ 1,947,004 2021 477,780 2022 97,141 2023 55,028 2024 45,510 Thereafter 340 Total $ 2,622,803 |
Short and Long-term Funding (Ta
Short and Long-term Funding (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Short and Long-Term Funding Composition | The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), long-term funding (funding with original contractual maturities greater than one year), and FHLB advances (funding based on original contractual maturities): ($ in Thousands) December 31, 2019 December 31, 2018 Short-Term Funding Federal funds purchased $ 362,000 $ 19,710 Securities sold under agreements to repurchase 71,097 91,941 Federal funds purchased and securities sold under agreements to repurchase 433,097 111,651 Commercial paper 32,016 45,423 Total short-term funding $ 465,113 $ 157,074 Long-Term Funding Corporation senior notes, at par, due 2019 $ — $ 250,000 Bank senior notes, at par, due 2021 300,000 300,000 Corporation subordinated notes, at par, due 2025 250,000 250,000 Finance leases 2,209 — Capitalized costs (2,866) (4,389) Total long-term funding 549,343 795,611 Total short and long-term funding, excluding FHLB advances $ 1,014,456 $ 952,685 FHLB Advances Short-term FHLB advances $ 520,000 $ 900,000 Long-term FHLB advances 2,660,967 2,674,371 Total FHLB advances $ 3,180,967 $ 3,574,371 Total short and long-term funding $ 4,195,422 $ 4,527,056 |
Schedule of Repurchase Agreements | The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of December 31, 2019 and December 31, 2018 are presented in the following table: Remaining Contractual Maturity of the Agreements ($ in Thousands) Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total December 31, 2019 Repurchase agreements Agency mortgage-related securities $ 71,097 $ — $ — $ — $ 71,097 Total $ 71,097 $ — $ — $ — $ 71,097 December 31, 2018 Repurchase agreements Agency mortgage-related securities $ 91,941 $ — $ — $ — $ 91,941 Total $ 91,941 $ — $ — $ — $ 91,941 |
FHLB_Maturity_ [Table Text Block] | The original contractual maturity or next put date of the Corporation's FHLB advances as of December 31, 2019 and December 31, 2018 are presented in the following table: December 31, 2019 December 31, 2018 ($ in Thousands) Amount Weighted Average Contractual Coupon Rate Amount Weighted Average Contractual Coupon Rate Maturity or put date 1 year or less $ 2,055,056 2.19 % $ 2,262,584 2.06 % After 1 but within 2 14,099 2.95 % 1,285,039 2.39 % After 2 but within 3 504,154 2.12 % 14,393 2.98 % After 3 years 607,657 2.29 % 12,354 4.55 % FHLB advances and overall rate $ 3,180,967 2.20 % $ 3,574,371 2.19 % |
Schedule of Maturities of Long-term Debt [Table Text Block] | The table below summarizes the maturities of the Corporation’s long-term funding, including long-term FHLB advances, at December 31, 2019: Year ($ in Thousands) 2020 $ 85,095 2021 312,700 2022 504,193 2023 202,572 2024 250,673 Thereafter 1,855,075 Total long-term funding $ 3,210,310 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Fair value assumptions of stock options | The following assumptions were used in estimating the fair value for options granted in 2019, 2018, and 2017: 2019 2018 2017 Dividend yield 3.30 % 2.50 % 2.00 % Risk-free interest rate 2.60 % 2.60 % 2.00 % Weighted average expected volatility 24.00 % 22.00 % 25.00 % Weighted average expected life 5.75 years 5.75 years 5.5 years Weighted average per share fair value of options $4.00 $4.47 $5.30 |
Summary of Company's Stock Option Activities | A summary of the Corporation’s stock option activity for the year ended December 31, 2019 is presented below: Stock Options Shares (a) Weighted Average Weighted Average Aggregate Outstanding at December 31, 2018 5,281 $ 19.09 6.18 years $ 12,392 Granted 1,050 22.77 Exercised (674) 15.75 Forfeited or expired (114) 22.42 Outstanding at December 31, 2019 5,543 $ 20.13 6.25 years $ 16,043 Options exercisable at December 31, 2019 3,360 $ 18.22 4.95 years $ 14,980 (a) In thousands |
Summary of Restricted Stock Awards Activity (Excluding Salary Shares) | The following table summarizes information about the Corporation’s restricted stock activity for the year ended December 31, 2019: Restricted Stock Shares (a) Weighted Average Outstanding at December 31, 2018 1,993 $ 21.92 Granted 1,180 22.20 Vested (710) 20.61 Forfeited (69) 23.84 Outstanding at December 31, 2019 2,393 $ 22.39 (a) In thousands |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Change in Benefit Obligation | The funded status and amounts recognized in the 2019 and 2018 consolidated balance sheets, as measured on December 31, 2019 and 2018, respectively, for the RAP and Postretirement Plan were as follows: RAP Postretirement RAP Bank Mutual Pension Postretirement ($ in Thousands) 2019 2019 2018 2018 2018 Change in Fair Value of Plan Assets Fair value of plan assets at beginning of year $ 390,564 $ — $ 331,609 N/A $ — Fair value of Bank Mutual plan assets at February 1, 2018 N/A — N/A 59,445 — Actual return on plan assets 67,377 — (14,609) (1,665) — Employer contributions — 270 4,340 37,537 292 Gross benefits paid (15,907) (270) (10,582) (15,513) (292) Bank Mutual plan assets transferred at December 31, 2018 N/A — 79,805 (79,805) — Fair value of plan assets at end of year (a) $ 442,034 $ — $ 390,564 $ — $ — Change in Benefit Obligation Net benefit obligation at beginning of year $ 233,658 $ 2,523 $ 186,423 N/A $ 2,478 Net Bank Mutual benefit obligation at February 1, 2018 N/A — N/A 66,364 576 Service cost 7,263 — 7,540 — — Interest cost 9,752 104 6,727 2,398 108 Actuarial (gain) loss 25,810 188 (8,000) (1,701) (347) Gross benefits paid (15,907) (270) (10,582) (2,644) (292) Lump sums paid — — — (12,868) — Bank Mutual benefit obligations transferred at December 31, 2018 N/A — $ 51,549 (51,549) — Net benefit obligation at end of year (a) $ 260,576 $ 2,545 $ 233,658 $ — $ 2,523 Funded (unfunded) status $ 181,458 $ (2,545) $ 156,906 $ — $ (2,523) Noncurrent assets $ 181,458 $ — $ 156,906 $ — $ — Current liabilities — (214) — — (219) Noncurrent liabilities — (2,330) — — (2,304) Asset (Liability) Recognized on the Consolidated Balance Sheets $ 181,458 $ (2,545) $ 156,906 $ — $ (2,523) (a) The fair value of the plan assets represented 170% and 167% of the net benefit obligation of the pension plan at December 31, 2019 and 2018, respectively. |
AOCI Components | Amounts recognized in accumulated other comprehensive (income) loss, net of tax, as of December 31, 2019 and 2018 follow: RAP Postretirement RAP Postretirement ($ in Thousands) 2019 2019 2018 2018 Prior service cost $ (249) $ (533) $ (303) $ (588) Net actuarial loss 37,075 126 50,238 (17) Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss $ 36,827 $ (406) $ 49,935 $ (605) |
Changes in OCI | Other changes in plan assets and benefit obligations recognized in OCI, net of tax, in 2019 and 2018 were as follows: RAP Postretirement RAP Postretirement ($ in Thousands) 2019 2019 2018 2018 Net actuarial gain (loss) $ 17,235 $ (188) $ (28,959) $ 347 Amortization of prior service cost (73) (75) (73) (75) Amortization of actuarial loss (gain) 480 (4) 2,195 8 Adjustment for adoption of ASU 2018-02 — — (5,235) — Income tax (expense) benefit (4,532) 67 6,838 (71) Total Recognized in OCI $ 13,109 $ (200) $ (25,234) $ 209 |
Net period benefit cost for the pension plans | The components of net pension cost for the RAP for 2019, 2018, and 2017 were as follows: ($ in Thousands) 2019 2018 2017 Service cost $ 7,263 $ 7,540 $ 6,955 Interest cost 9,752 9,125 7,121 Expected return on plan assets (24,332) (23,195) (19,646) Amortization of prior service cost (73) (73) (73) Amortization of actuarial loss (gain) 480 2,195 2,278 Recognized settlement loss (gain) — 809 — Total net periodic pension cost $ (6,910) $ (3,600) $ (3,365) |
Net period benefit cost for postretirement plan | The components of net periodic benefit cost for the Postretirement Plan for 2019, 2018, and 2017 were as follows: ($ in Thousands) 2019 2018 2017 Interest cost $ 104 $ 108 $ 101 Amortization of prior service cost (75) (75) (75) Amortization of actuarial loss (gain) (4) 8 4 Total net periodic benefit cost $ 25 $ 41 $ 30 |
Weighted Average Benefit Assumptions | RAP Postretirement RAP Postretirement 2019 2019 2018 2018 Weighted average assumptions used to determine benefit obligations Discount rate 3.20 % 3.20 % 4.30 % 4.30 % Rate of increase in compensation levels 2.00 % N/A 3.00 % N/A Weighted average assumptions used to determine net periodic benefit costs Discount rate (a) 4.30 % 4.30 % 3.77 % 3.77 % Rate of increase in compensation levels 3.00 % N/A 3.00 % N/A Expected long-term rate of return on plan assets (b) 6.00 % N/A 5.93 % N/A (a) Weighted average of the 2018 fiscal year discount rate assumption for the RAP was 3.70% and the Bank Mutual Pension Plan was 4.00% (b) Weighted average of the 2018 fiscal year expected return on asset assumption for the RAP was 6.00% and the Bank Mutual Pension Plan was 5.50% |
Plan Asset Allocation Percentages | The asset allocation for the RAP as of the December 31, 2019 and 2018 measurement dates, respectively, by asset category were as follows: Asset Category 2019 2018 Equity securities 51 % 49 % Fixed-income securities 33 % 34 % Group annuity contracts 11 % 12 % Alternative securities 3 % 3 % Other 2 % 2 % Total 100 % 100 % |
Pension Plan Investments | Based on these inputs, the following table summarizes the fair value of the RAP’s investments as of December 31, 2019 and 2018: Fair Value Measurements Using ($ in Thousands) December 31, 2019 Level 1 Level 2 Level 3 RAP Investments Money market account $ 8,903 $ 8,903 $ — $ — Common /collective trust funds 155,964 155,964 — — Mutual funds 227,112 227,112 — — Group annuity contracts 50,055 — — 50,055 Total RAP Investments $ 442,034 $ 391,979 $ — $ 50,055 Fair Value Measurements Using ($ in Thousands) December 31, 2018 Level 1 Level 2 Level 3 RAP Investments Money market account $ 7,159 $ 7,159 $ — $ — Common /collective trust funds 138,020 138,020 — — Mutual funds 198,120 198,120 — — Group annuity contracts 47,265 — — 47,265 Total RAP Investments $ 390,564 $ 343,299 $ — $ 47,265 |
Schedule of Changes in Fair Value of Plan Assets | The following presents a summary of the changes in the fair value of the RAP's Level 3 asset during the periods indicated. As noted above, the Corporation's Level 3 asset consists entirely of a group annuity contract issued by a life insurance company. Fair Value Reconciliation of Level 3 RAP Investments 2019 2018 (a) Fair value of group annuity contract at beginning of period $ 47,265 $ 49,191 Return on plan assets 5,495 565 Benefits paid (2,704) (2,491) Fair value of group annuity contract at end of period $ 50,055 $ 47,265 (a) Period begins on February 1, the date the Corporation acquired the group annuity contract from the Bank Mutual acquisition. |
Expected Benefit Payments | The projected benefit payments were calculated using the same assumptions as those used to calculate the benefit obligations listed above. The projected benefit payments for the RAP and Postretirement Plan at December 31, 2019, reflecting expected future services, were as follows: ($ in Thousands) RAP Postretirement Plan Estimated future benefit payments 2020 $ 19,659 $ 218 2021 19,755 213 2022 20,729 208 2023 20,392 202 2024 20,710 196 2025-2029 91,264 867 |
One Percentage Point Change in Assumed Health Care Cost | A one percentage point change in the assumed health care cost trend rate would have the following effect: 2019 2018 ($ in Thousands) 100 bp Increase 100 bp Decrease 100 bp Increase 100 bp Decrease Effect on total of service and interest cost $ 7 $ (6) $ 7 $ (6) Effect on postretirement benefit obligation $ 170 $ (148) $ 164 $ (143) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Income Tax Expense (Benefit) | The current and deferred amounts of income tax expense (benefit) were as follows: Years Ended December 31, ($ in Thousands) 2019 2018 2017 Current Federal $ 50,560 $ 20,246 $ 76,525 State 15,327 12,593 11,576 Total current 65,887 32,839 88,101 Deferred Federal 14,094 34,941 19,755 State (261) 12,006 1,647 Total deferred 13,833 46,947 21,402 Total income tax expense $ 79,720 $ 79,786 $ 109,503 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences between the amounts reported on the financial statements and the tax bases of assets and liabilities resulted in deferred taxes. Deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows: ($ in Thousands) 2019 2018 Deferred tax assets Allowance for loan losses $ 48,790 $ 61,143 Allowance for other losses 7,236 8,304 Accrued liabilities 4,005 3,736 Deferred compensation 28,018 24,754 Benefit of tax loss and credit carryforwards 13,444 10,126 Nonaccrual interest 1,299 1,666 Net unrealized losses on available-for-sale securities — 25,731 Net unrealized losses on pension and postretirement benefits 12,174 16,640 Other 3,495 1,916 Total deferred tax assets 118,461 154,015 Valuation allowance for deferred tax assets (251) (251) Total deferred tax assets after valuation allowance $ 118,211 $ 153,764 Deferred tax liabilities Prepaid expenses $ 62,227 $ 61,250 Goodwill 21,099 20,178 Mortgage banking activities 17,418 17,428 Deferred loan fee income 12,190 11,892 State deferred taxes 722 518 Lease financing 199 410 Bank premises and equipment 18,348 18,655 Purchase accounting 13,738 12,414 Deferred gains from equity securities and other investments 4,810 — Net unrealized gains on available-for-sale securities 1,139 — Other 1,156 684 Total deferred tax liabilities $ 153,045 $ 143,429 Net deferred tax assets (liabilities) $ (34,836) $ 10,335 |
Summary of Valuation Allowance [Table Text Block] | The changes in the valuation allowance related to net operating losses for 2019 and 2018 were as follows: ($ in Thousands) 2019 2018 Valuation allowance for deferred tax assets, beginning of year $ (251) $ (269) (Increase) decrease in current year — 18 Valuation allowance for deferred tax assets, end of year $ (251) $ (251) |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differs from the statutory federal tax rate. The major reasons for this difference were as follows: 2019 2018 2017 Federal income tax rate at statutory rate 21.0 % 21.0 % 35.0 % Increases (decreases) resulting from: Tax-exempt interest and dividends (3.3) % (2.6) % (4.1) % State income taxes (net of federal benefit) 3.5 % 3.7 % 2.9 % Bank owned life insurance (0.8) % (0.7) % (1.7) % Tax effect of tax credits and benefits, net of related expenses (0.9) % (0.7) % (0.7) % Tax reserve adjustments / settlements 0.2 % 1.5 % (1.2) % Net tax benefit from stock-based compensation (0.2) % (0.5) % (1.3) % Tax Act impact on deferred remeasurement — % — % 3.5 % Tax planning in response to the Tax Act — % (3.6) % — % FDIC premium 0.5 % 0.9 % — % Other (0.4) % 0.3 % (0.1) % Effective income tax rate 19.6 % 19.3 % 32.3 % |
Summary Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: ($ in Millions) 2019 2018 Balance at beginning of year $ 2 $ 4 Subtractions for tax positions related to prior years — — Subtractions for settlements with tax authorities — (3) Additions for tax positions related to current year 1 1 Balance at end of year $ 3 $ 2 |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance sheet category and fair values of derivative instruments not designated as hedging instruments | The table below identifies the balance sheet category and fair values of the Corporation’s derivative instruments: December 31, 2019 December 31, 2018 Asset Liability Asset Liability ($ in Thousands) Notional Amount Fair Notional Amount Fair Notional Amount Fair Notional Amount Fair Designated as hedging instruments Interest rate-related instruments $ — $ — $ — $ — $ — $ — $ 500,000 $ 40 Not designated as hedging instruments Interest rate-related instruments 3,029,877 77,024 3,029,877 13,073 2,707,204 52,796 2,707,204 52,653 Foreign currency exchange forwards 272,636 4,226 264,653 4,048 117,879 721 69,153 675 Commodity contracts 255,089 20,528 255,165 19,624 331,727 35,426 315,861 34,340 Mortgage banking (a) 255,291 2,527 263,000 710 191,222 2,208 139,984 2,072 Time deposits — — — — 11,185 109 11,185 109 Total not designated as hedging instruments 104,305 37,455 91,260 89,849 Gross derivatives before netting $ 104,305 $ 37,455 $ 91,260 $ 89,889 Less: Legally enforceable master netting agreements 10,410 10,410 5,322 5,322 Less: Cash collateral pledged/received 1,408 11,365 27,593 63 Total derivative instruments, after netting (b) $ 92,487 $ 15,680 $ 58,345 $ 84,504 (a) Mortgage derivative assets include interest rate lock commitments and mortgage derivative liabilities include forward commitments. (b) The fair values of derivative assets are included in other assets, while the fair values of derivative liabilities are included in accrued expenses and other liabilities, on the consolidated balance sheets. |
Balance Sheet Recording of Fair Value Hedge [Table Text Block] | The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustment for fair value hedges: Line Item on the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (b) ($ in Thousands) December 31, 2019 Loans and investment securities available for sale (a) $ 505,371 $ 5,371 Total $ 505,371 $ 5,371 (a) These amounts include the amortized cost basis of closed portfolios used to designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $893 million; the positive cumulative basis adjustments associated with these hedging relationships was approximately $5 million; and the amounts of the designated hedged items were $500 million which were terminated during the fourth quarter of 2019. |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income during the twelve months ended December 31, 2019: Location and Amount of Gain or (Loss) Recognized on Consolidated Statements of Income in Fair Value and Cash Flow Hedging Relationships Year Ended December 31, 2019 Year Ended December 31, 2018 ($ in Thousands) Interest Income Other Income (Expense) Interest Income Other Income (Expense) Total amounts of income and expense line items presented on the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded (a) $ (448) $ — $ (1,325) $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 5,871 — (502) — Derivatives designated as hedging instruments (a) (6,319) — (823) — (a) Includes net settlements on the derivatives |
Gain (loss) on derivative instruments not designated as hedging instruments | The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income during the twelve months ended December 31, 2019 and 2018: Consolidated Statements of Income Category of For the Year Ended December 31, ($ in Thousands) 2019 2018 Derivative Instruments Interest rate-related instruments — customer and mirror, net Capital market fees, net $ (1,393) $ (316) Interest rate lock commitments (mortgage) Mortgage banking, net 319 670 Forward commitments (mortgage) Mortgage banking, net 1,362 (1,759) Foreign currency exchange forwards Capital market fees, net 132 (110) Commodity contracts Capital market fees, net (1,763) (314) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting of Derivative Assets and Liabilities | The interest, commodity and foreign exchange agreements we have with our commercial customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table: Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets Net Amounts Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets ($ in Thousands) Gross Amounts Recognized Derivative Liabilities Offset Cash Collateral Received Net Derivative assets (a) December 31, 2019 $ 11,864 $ (10,410) $ (1,408) $ 45 $ — $ 45 December 31, 2018 65,596 (5,322) (27,593) 32,681 (31,837) 843 Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets Net Amounts Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets ($ in Thousands) Gross Amounts Recognized Derivative Assets Offset Cash Collateral Pledged Net Derivative liabilities (a) December 31, 2019 $ 22,189 $ (10,410) $ (11,365) $ 413 $ — $ 413 December 31, 2018 22,951 (5,322) (63) 17,567 (17,551) 16 |
Commitments, Off-Balance Shee_2
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of lending-related and other commitments | The following is a summary of lending-related commitments: ($ in Thousands) 2019 2018 Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale (a)(b) $ 9,024,412 $ 8,720,293 Commercial letters of credit (a) 7,081 7,599 Standby letters of credit (c) 277,969 255,904 (a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at December 31, 2019 and 2018. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 14. (c) The Corporation has established a liability of $3 million and $2 million at December 31, 2019 and December 31, 2018, respectively, as an estimate of the fair value of these financial instruments. |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Balance Sheet | Balance Sheets December 31, ($ in Thousands) 2019 2018 Assets Cash and due from banks $ 17,427 $ 16,245 Interest-bearing deposits in other financial institutions 27,186 38,374 Notes and interest receivable from subsidiaries 201,551 453,615 Investments in and receivable due from subsidiaries 3,925,596 3,787,574 Other assets 46,234 47,448 Total assets $ 4,217,994 $ 4,343,256 Liabilities and Stockholders' Equity Commercial paper $ 32,016 $ 45,423 Senior notes, at par — 250,000 Subordinated notes, at par 250,000 250,000 Long-term funding capitalized costs (1,428) (2,043) Total long-term funding 248,572 497,957 Accrued expenses and other liabilities 15,282 18,988 Total liabilities 295,870 562,368 Preferred equity 256,716 256,716 Common equity 3,665,407 3,524,171 Total stockholders’ equity 3,922,124 3,780,888 Total liabilities and stockholders’ equity $ 4,217,994 $ 4,343,256 |
Parent Company Income Statement | Statements of Income For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Income Income from subsidiaries $ 341,789 $ 354,637 $ 253,485 Interest income on notes receivable from subsidiaries 13,983 12,199 4,175 Other income 761 994 1,763 Total income 356,532 367,830 259,423 Expense Interest expense on short and long-term funding 16,802 18,355 18,464 Other expense 6,583 11,736 6,927 Total expense 23,384 30,091 25,391 Income before income tax expense 333,148 337,739 234,032 Income tax expense 6,359 4,176 4,768 Net income 326,790 333,562 229,264 Preferred stock dividends 15,202 10,784 9,347 Net income available to common equity $ 311,587 $ 322,779 $ 219,917 |
Parent Company Statement of Cash Flows | Statements of Cash Flows For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 326,790 $ 333,562 $ 229,264 Adjustments to reconcile net income to net cash provided by operating activities: (Increase) decrease in equity in undistributed net income (loss) of subsidiaries (21,789) (18,636) (40,485) (Gain) loss on sales of assets, net — — (88) Net change in other assets and accrued expenses and other liabilities 265 (92,366) (9,589) Net cash provided by operating activities 305,266 222,562 179,102 Cash Flows from Investing Activities Proceeds from sales of investment securities — 827 2,618 Net (increase) decrease in notes receivable from subsidiaries 250,000 (139,317) (300,000) Net (increase) decrease in loans — 2,210 1,058 Net cash provided by (used in) investing activities 250,000 (136,280) (296,324) Cash Flows from Financing Activities Net increase (decrease) in commercial paper (13,406) (22,044) (34,221) Redemption of Corporation's senior notes (250,000) — — Proceeds from issuance of common stock for stock-based compensation plans 11,216 18,408 27,619 Proceeds from issuance of preferred stock — 97,315 — Purchase of preferred stock — (537) — Common stock warrants exercised — (1) — Purchase of common stock returned to authorized but unissued — (33,075) (37,031) Issuance of treasury stock for acquisition — 91,296 — Purchase of treasury stock (186,076) (213,598) (9,290) Cash dividends on common stock (111,804) (105,519) (76,417) Cash dividends on preferred stock (15,202) (10,784) (9,347) Net cash used in financing activities (565,272) (178,540) (138,687) Net increase (decrease) in cash and cash equivalents (10,006) (92,258) (255,909) Cash and cash equivalents at beginning of year 54,619 146,877 402,786 Cash and cash equivalents at end of year $ 44,613 $ 54,619 $ 146,877 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis at fair value | The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of December 31, 2019 and 2018, aggregated by the level in the fair value hierarchy within which those measurements fall: ($ in Thousands) Fair Value Hierarchy December 31, 2019 December 31, 2018 Assets Investment securities available for sale U.S. Treasury securities Level 1 $ — $ 999 Obligations of state and political subdivisions (municipal securities) Level 2 546,160 — Residential mortgage-related securities FNMA / FHLMC Level 2 132,660 295,252 GNMA Level 2 985,139 2,128,531 Private-label Level 2 — 1,003 Commercial mortgage-related securities FNMA / FHLMC Level 2 21,728 — GNMA Level 2 1,310,207 1,220,797 FFELP asset-backed securities Level 2 263,693 297,360 Other debt securities Level 2 3,000 3,000 Total investment securities available for sale Level 1 — 999 Total investment securities available for sale Level 2 3,262,586 3,945,943 Equity securities with readily determinable fair values Level 1 1,646 1,568 Residential loans held for sale Level 2 136,280 64,321 Interest rate-related instruments (a) Level 2 77,024 52,796 Foreign currency exchange forwards (a) Level 2 4,226 721 Commodity contracts (a) Level 2 20,528 35,426 Purchased options (time deposit) Level 2 — 109 Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 2,527 2,208 Liabilities Interest rate-related instruments (a) Level 2 $ 13,073 $ 52,653 Foreign currency exchange forwards (a) Level 2 4,048 675 Commodity contracts (a) Level 2 19,624 34,340 Written options (time deposit) Level 2 — 109 Interest rate products (designated as hedging instruments) Level 2 — 40 Forward commitments to sell residential mortgage loans Level 3 710 2,072 (a) Figures presented gross before netting. See Note 14 and Note 15 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place. |
Assets and liabilities measured at fair value using significant unobservable inputs (level 3) | The table below presents a rollforward of the consolidated balance sheets amounts for the years ended December 31, 2019 and 2018, for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy: ($ in Thousands) Derivative Financial Instruments Balance December 31, 2017 $ 1,225 Total net gains (losses) included in income Mortgage derivative gain (loss) (1,085) Balance December 31, 2018 $ 140 Total net gains (losses) included in income Mortgage derivative gain (loss) 1,681 Balance December 31, 2019 $ 1,817 |
Equity Securities without Readily Determinable Fair Value | Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of December 31, 2019: ($ in Thousands) Equity securities without readily determinable fair values Carrying value as of December 31, 2018 $ — Upward carrying value changes 13,444 Carrying value as of December 31, 2019 $ 13,444 Cumulative upward carrying value changes between January 1, 2018 and December 31, 2019 $ 13,444 Cumulative downward carrying value changes between January 1, 2018 and December 31, 2019 $ — |
Assets and liabilities measured on nonrecurring basis at fair value | The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall: ($ in Thousands) Fair Value Hierarchy Fair Value Consolidated Statements of Income Category of Adjustment Recognized on the Consolidated Statements of Income December 31, 2019 Assets Impaired loans (a) Level 3 $ 45,792 Provision for credit losses (b) $ (66,172) OREO (c) Level 2 3,565 Other noninterest expense (1,860) Mortgage servicing rights Level 3 72,532 Mortgage banking, net (63) Equity securities Level 3 13,444 Investment securities gains (losses), net 13,444 December 31, 2018 Assets Impaired loans (a) Level 3 $ 26,191 Provision for credit losses (b) $ (14,521) OREO (c) Level 2 2,200 Other noninterest expense (1,545) Mortgage servicing rights Level 3 81,012 Mortgage banking, net 545 (a) Represents individually evaluated impaired loans, net of the related allowance for loan losses. (b) Represents provision for credit losses on individually evaluated impaired loans. (c) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table. |
Schedule of assumptions for fair value as of balance sheet date of assets or liabilities that relate to transferor's continuing involvement | The table below presents information about these inputs and further discussion is found above: December 31, 2019 Valuation Technique Significant Unobservable Input Weighted Average Input Applied Mortgage servicing rights Discounted cash flow Discount rate 9% Mortgage servicing rights Discounted cash flow Constant prepayment rate 12% Impaired loans Appraisals / Discounted cash flow Collateral / Discount factor 44% |
Estimated fair values of financial instruments | Fair value estimates are set forth below for the Corporation’s financial instruments: December 31, 2019 December 31, 2018 ($ in Thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 373,380 $ 373,380 $ 507,187 $ 507,187 Interest-bearing deposits in other financial institutions Level 1 207,624 207,624 221,226 221,226 Federal funds sold and securities purchased under agreements to resell Level 1 7,740 7,740 148,285 148,285 Investment securities held to maturity Level 1 999 1,018 — — Investment securities held to maturity Level 2 2,204,084 2,275,447 2,740,511 2,710,271 Investment securities available for sale Level 1 — — 999 999 Investment securities available for sale Level 2 3,262,586 3,262,586 3,945,943 3,945,943 Equity securities with readily determinable fair values Level 1 1,646 1,646 1,568 1,568 Equity securities without readily determinable fair values Level 3 13,444 13,444 — — FHLB and Federal Reserve Bank stocks Level 2 227,347 227,347 250,534 250,534 Residential loans held for sale Level 2 136,280 136,280 64,321 64,321 Commercial loans held for sale Level 2 15,000 15,000 14,943 14,943 Loans, net Level 3 22,620,068 22,399,621 22,702,406 22,317,395 Bank and corporate owned life insurance Level 2 671,948 671,948 663,203 663,203 Derivatives (other assets) (a) Level 2 101,778 101,778 89,052 89,052 Interest rate lock commitments to originate residential mortgage loans held for sale (other assets) Level 3 2,527 2,527 2,208 2,208 Financial liabilities Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 21,156,261 $ 21,156,261 $ 22,081,992 $ 22,081,992 Brokered CDs and other time deposits (b) Level 2 2,622,803 2,622,803 2,815,401 2,815,401 Short-term funding (c) Level 2 465,113 465,113 157,074 157,074 Long-term funding Level 2 549,343 588,774 795,611 826,612 FHLB advances Level 2 3,180,967 3,207,793 3,574,371 3,565,572 Standby letters of credit (d) Level 2 2,710 2,710 2,482 2,482 Derivatives (accrued expenses and other liabilities) (a) Level 2 36,745 36,745 87,817 87,817 Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities) Level 3 710 710 2,072 2,072 (a) Figures presented gross before netting. See Note 14 and Note 15 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place. (b) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value. (c) The carrying amount is a reasonable estimate of fair value for existing short-term funding. (d) The commitment on standby letters of credit was $278 million and $256 million at December 31, 2019 and 2018, respectively. See Note 16 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts and ratios of the Corporation and its significant subsidiary are presented below. No deductions from capital were made for interest rate risk in 2019 or 2018. Actual For Capital Adequacy To Be Well Capitalized Under Prompt Corrective Action Provisions (b) ($ in Thousands) Amount Ratio (a) Amount Ratio (a) Amount Ratio (a) As of December 31 , 2019 Associated Banc-Corp Total capital $ 3,208,625 13.21 % $ 1,943,711 ≥ 8.00 % Tier 1 capital 2,736,776 11.26 % 1,457,783 ≥ 6.00 % Common equity Tier 1 capital 2,480,698 10.21 % 1,093,337 ≥ 4.50 % Leverage 2,736,776 8.83 % 1,239,431 ≥ 4.00 % Associated Bank, N.A. Total capital $ 2,892,650 11.95 % $ 1,936,732 ≥ 8.00 % $ 2,420,915 ≥ 10.00 % Tier 1 capital 2,669,372 11.03 % 1,452,549 ≥ 6.00 % 1,936,732 ≥ 8.00 % Common equity Tier 1 capital 2,469,578 10.20 % 1,089,412 ≥ 4.50 % 1,573,595 ≥ 6.50 % Leverage 2,669,372 8.63 % 1,236,565 ≥ 4.00 % 1,545,706 ≥ 5.00 % As of December 31 , 2018 Associated Banc-Corp Total capital $ 3,216,575 13.49 % $ 1,907,403 ≥ 8.00 % Tier 1 capital 2,705,939 11.35 % 1,430,553 ≥ 6.00 % Common equity Tier 1 capital 2,449,721 10.27 % 1,072,914 ≥ 4.50 % Leverage 2,705,939 8.49 % 1,275,048 ≥ 4.00 % Associated Bank, N.A. Total capital $ 2,909,064 12.25 % $ 1,900,536 ≥ 8.00 % $ 2,375,671 ≥ 10.00 % Tier 1 capital 2,646,705 11.14 % 1,425,402 ≥ 6.00 % 1,900,536 ≥ 8.00 % Common equity Tier 1 capital 2,446,782 10.30 % 1,069,052 ≥ 4.50 % 1,544,186 ≥ 6.50 % Leverage 2,646,705 8.32 % 1,272,804 ≥ 4.00 % 1,591,006 ≥ 5.00 % (a) When fully phased-in on January 1, 2019, the Basel III capital rules included a capital conservation buffer of 2.5% that was added on top of each of the minimum risk-based capital ratios noted above. Implementation began on January 1, 2016 at the 0.625% level and has increased each subsequent January 1, until it reached 2.5% on January 1, 2019. (b) Prompt corrective action provisions are not applicable at the bank holding company level. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculations for basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share: For the Years Ended December 31, ($ in Thousands, except per share data) 2019 2018 2017 Net income $ 326,790 $ 333,562 $ 229,264 Preferred stock dividends (15,202) (10,784) (9,347) Net income available to common equity 311,587 322,779 219,917 Common shareholder dividends (111,091) (104,981) (75,967) Unvested share-based payment awards (713) (537) (450) Undistributed earnings 199,784 217,260 143,500 Undistributed earnings allocated to common shareholders 198,424 216,199 142,593 Undistributed earnings allocated to unvested share-based payment awards 1,360 1,060 907 Undistributed earnings $ 199,784 $ 217,260 $ 143,500 Basic Distributed earnings to common shareholders $ 111,091 $ 104,981 $ 75,967 Undistributed earnings allocated to common shareholders 198,424 216,199 142,593 Total common shareholders earnings, basic $ 309,514 $ 321,181 $ 218,560 Diluted Distributed earnings to common shareholders $ 111,091 $ 104,981 $ 75,967 Undistributed earnings allocated to common shareholders 198,424 216,199 142,593 Total common shareholders earnings, diluted $ 309,514 $ 321,181 $ 218,560 Weighted average common shares outstanding $ 160,534 $ 167,345 $ 150,877 Effect of dilutive common stock awards 1,398 1,985 2,038 Effect of dilutive common stock warrants — 402 732 Diluted weighted average common shares outstanding $ 161,932 $ 169,732 $ 153,647 Basic earnings per common share $ 1.93 $ 1.92 $ 1.45 Diluted earnings per common share $ 1.91 $ 1.89 $ 1.42 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Selected segment information | Information about the Corporation’s segments is presented below: Corporate and Commercial Specialty For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 450,532 $ 457,613 $ 360,789 Net intersegment interest income (expense) (76,064) (56,356) (3,737) Segment net interest income 374,467 401,258 357,051 Noninterest income 53,282 52,321 52,297 Total revenue 427,749 453,578 409,348 Credit provision 52,382 44,592 42,298 Noninterest expense 156,348 160,399 156,890 Income (loss) before income taxes 219,019 248,587 210,160 Income tax expense (benefit) 41,209 47,850 71,655 Net income $ 177,809 $ 200,737 $ 138,505 Allocated goodwill $ 525,836 $ 524,525 $ 428,000 Community, Consumer, and Business For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 332,850 $ 357,245 $ 316,008 Net intersegment interest income (expense) 103,468 87,737 45,353 Segment net interest income 436,318 444,982 361,361 Noninterest income 307,750 295,647 266,250 Total revenue 744,067 740,629 627,611 Credit provision 20,043 20,083 20,400 Noninterest expense 547,423 541,771 490,567 Income (loss) before income taxes 176,601 178,775 116,645 Income tax expense (benefit) 37,105 37,543 40,826 Net income $ 139,496 $ 141,232 $ 75,819 Allocated goodwill $ 650,394 $ 644,498 $ 548,238 Risk Management and Shared Services For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 52,292 $ 64,722 $ 64,423 Net intersegment interest income (expense) (27,403) (31,382) (41,615) Segment net interest income 24,889 33,341 22,808 Noninterest income 19,793 7,600 14,133 Total revenue 44,682 40,941 36,941 Credit provision (56,425) (64,675) (36,698) Noninterest expense (a) 90,217 119,629 61,677 Income (loss) before income taxes 10,890 (14,013) 11,962 Income tax expense (benefit) 1,405 (5,606) (2,978) Net income $ 9,484 $ (8,407) $ 14,941 Allocated goodwill $ — $ — $ — Consolidated Total For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Net interest income $ 835,674 $ 879,580 $ 741,220 Net intersegment interest income (expense) — — — Segment net interest income 835,674 879,580 741,220 Noninterest income 380,824 355,568 332,680 Total revenue 1,216,498 1,235,148 1,073,900 Credit provision 16,000 — 26,000 Noninterest expense 793,988 821,799 709,133 Income (loss) before income taxes 406,509 413,349 338,767 Income tax expense (benefit) 79,720 79,786 109,503 Net income $ 326,790 $ 333,562 $ 229,264 Allocated goodwill $ 1,176,230 $ 1,169,023 $ 976,239 (a) For the year ended December 31, 2019, the Risk Management and Shared Services segment includes approximately $7 million of acquisition related costs. For the year ended December 31, 2018, the Risk Management and Shared Services segment includes approximately $29 million of acquisition related costs within noninterest expense and approximately $2 million of acquisition related asset losses, net of asset gains within noninterest income. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of activity in accumulated other comprehensive income (loss) | The following table summarizes the components of accumulated other comprehensive income (loss) at December 31, 2019, 2018, and 2017 respectively, including changes during the years then ended as well as any reclassifications out of accumulated other comprehensive income (loss): ($ in Thousands) Investment Defined Benefit Accumulated Balance, December 31, 2016 $ (20,079) $ (34,600) $ (54,679) Other comprehensive income (loss) before reclassifications (27,040) 14,273 (12,767) Amounts reclassified from accumulated other comprehensive income (loss) Personnel expense — (148) (148) Other expense — 2,282 2,282 Interest income (2,665) — (2,665) Income tax (expense) benefit 11,331 (6,112) 5,219 Net other comprehensive income (loss) during period (18,374) 10,295 (8,079) Balance, December 31, 2017 $ (38,453) $ (24,305) $ (62,758) Other comprehensive income (loss) before reclassifications $ (39,891) $ (28,612) $ (68,503) Amounts reclassified from accumulated other comprehensive income (loss) Investment securities losses (gains), net 1,985 — 1,985 Personnel expense — (148) (148) Other expense — 2,203 2,203 Interest income (572) — (572) Adjustment for adoption of ASU 2016-01 (84) — (84) Adjustment for adoption of ASU 2018-02 (8,419) (5,235) (13,654) Income tax (expense) benefit 9,791 6,767 16,558 Net other comprehensive income (loss) during period (37,189) (25,025) (62,214) Balance, December 31, 2018 $ (75,643) $ (49,330) $ (124,972) Other comprehensive income (loss) before reclassifications $ 111,592 $ 16,296 $ 127,887 Amounts reclassified from accumulated other comprehensive income (loss) Investment securities losses (gains), net (5,957) — (5,957) Personnel expense — (148) (148) Other expense — 476 476 Interest income 895 — 895 Income tax (expense) benefit (26,898) (4,465) (31,363) Net other comprehensive income (loss) during period 79,631 12,158 91,789 Balance, December 31, 2019 $ 3,989 $ (37,172) $ (33,183) |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The Corporation's disaggregated revenue by major source is presented below: Corporate and Commercial Specialty For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Service charges and deposit account fees $ 12,883 $ 14,981 $ 16,006 Card-based fees (a) 1,373 1,334 1,125 Other revenue 1,002 694 811 Noninterest Income (in-scope of Topic 606) $ 15,258 $ 17,009 $ 17,941 Noninterest Income (out-of-scope of Topic 606) 38,024 35,311 34,355 Total Noninterest Income $ 53,282 $ 52,321 $ 52,297 Community, Consumer, and Business For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Insurance commissions and fees $ 89,091 $ 89,472 $ 81,468 Wealth management fees (b) 83,467 82,341 70,126 Service charges and deposit account fees 50,203 51,025 48,344 Card-based fees (a) 38,349 38,439 33,849 Other revenue 10,952 11,087 10,095 Noninterest Income (in-scope of Topic 606) $ 272,062 $ 272,363 $ 243,883 Noninterest Income (out-of-scope of Topic 606) 35,687 23,284 22,367 Total Noninterest Income $ 307,750 $ 295,647 $ 266,250 Risk Management and Share Services For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Insurance commissions and fees $ 13 $ 39 $ 6 Wealth management fees (b) — 222 — Service charges and deposit account fees 49 69 77 Card-based fees (a) 190 37 23 Other revenue 675 345 245 Noninterest Income (in-scope of Topic 606) $ 926 $ 712 $ 351 Noninterest Income (out-of-scope of Topic 606) 18,866 6,889 13,783 Total Noninterest Income $ 19,793 $ 7,600 $ 14,133 Consolidated Total For the Years Ended December 31, ($ in Thousands) 2019 2018 2017 Insurance commissions and fees $ 89,104 $ 89,511 $ 81,474 Wealth management fees (b) 83,467 82,562 70,126 Service charges and deposit account fees 63,135 66,075 64,427 Card-based fees (a) 39,912 39,810 34,997 Other revenue 12,629 12,126 11,151 Noninterest Income (in-scope of Topic 606) $ 288,247 $ 290,084 $ 262,175 Noninterest Income (out-of-scope of Topic 606) 92,577 65,484 70,505 Total Noninterest Income $ 380,824 $ 355,568 $ 332,680 (a) Certain card-based fees are out-of-scope of Topic 606. (b) Includes trust, asset management, brokerage, and annuity fees. |
Revenue Recognition 606 [Text Block] | Below is a listing of performance obligations for the Corporation's main revenue streams: Revenue Stream Noninterest income in-scope of Topic 606 Insurance commissions and fees The Corporation's insurance revenue has two distinct performance obligations. The first performance obligation is the selling of the policy as an agent for the carrier. This performance obligation is satisfied upon binding of the policy. The second performance obligation is the ongoing servicing of the policy which is satisfied over the life of the policy. For employee benefits, the payment is typically received monthly. For property and casualty, payments can vary, but are typically received at, or in advance, of the policy period. Service charges and deposit account fees Service charges on deposit accounts consist of monthly service fees (i.e. business analysis fees and consumer service charges) and other deposit account related fees. The Corporation's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to the customers’ accounts. Card-based fees (a) Card-based fees are primarily comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation's debit and credit cards are processed through card payment networks. ATM and merchant fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment is typically received immediately or in the following month. Trust and asset management fees (b) Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to the customers’ accounts. The Corporation's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Brokerage and advisory fees (b) Brokerage and advisory fees primarily consists of investment advisory, brokerage, retirement services, and annuities. The Corporation's performance obligation for investment advisory services and retirement services is generally satisfied, and the related revenue recognized, over the period in which the services are provided. The performance obligation for annuities is satisfied upon sale of the annuity, and therefore, the related revenue is primarily recognized at the time of sale. Payment for these services are typically received immediately or in advance of the service. (a) Certain card-based fees are out-of-scope of Topic 606. (b) Trust and asset management fees and brokerage and advisory fees are included in wealth management fees. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Other Assets | [1] | $ (597,242) | $ (597,242) | $ (516,538) | ||||||
Accrued expenses and other liabilities(a) | 489,868 | 489,868 | 409,787 | |||||||
Transfer of held to maturity securities to available for sale securities (adoption of ASU 2019-04) | $ 692,000 | 692,414 | 0 | $ 0 | ||||||
Operating Lease, Right-of-Use Asset | 45,381 | 45,381 | ||||||||
Present value of lease payments | $ 49,292 | 49,292 | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (13,738) | |||||||||
Furniture, fixtures and other equipment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 12 years | 7 years | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 915 | |||||||||
Restatement Adjustment [Member] | Change In Accounting Policy For Netting Agreements [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Other Assets | (33,000) | |||||||||
Accrued expenses and other liabilities(a) | $ (33,000) | |||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Operating Lease, Right-of-Use Asset | $ 52,000 | |||||||||
Present value of lease payments | $ 56,000 | |||||||||
Accounting Standards Update 2019-04 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Transfer of held to maturity securities to available for sale securities (adoption of ASU 2019-04) | $ 692,000 | |||||||||
Forecast [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Reasonable and Supportable Period 2016-13 | 2 years | |||||||||
Core Deposits [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||||||
Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||||||||
Minimum [Member] | Furniture, fixtures and other equipment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||
Minimum [Member] | Subsequent Event [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 70,000 | |||||||||
Minimum [Member] | Forecast [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Impact To Tangible Common Equity, Percent Increase (Decrease) | (0.21%) | |||||||||
Maximum | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% | |||||||||
Maximum | Furniture, fixtures and other equipment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||||||
Maximum | Subsequent Event [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 80,000 | |||||||||
Maximum | Forecast [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Impact To Tangible Common Equity, Percent Increase (Decrease) | (0.24%) | |||||||||
[1] | (a) During the third quarter of 2019, the Corporation made a change in accounting policy to offset derivative assets and liabilities and cash collateral with the same counterparty where it has a legally enforceable master netting agreement in place. The change had no impact on either earnings or equity. The Corporation believes that this change is a preferable method of accounting as it provides a better reflection of the assets and liabilities on the face of the consolidated balance sheets. Adoption of this change was voluntary and has been adopted retrospectively with all prior periods presented herein revised. |
Huntington Acquisition (Details
Huntington Acquisition (Details) - USD ($) $ in Thousands | Jun. 14, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
June 14, 2019 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 725,764 | $ 2,340,323 | $ 54 | |
Huntington National Bank | ||||
Purchase Accounting Adjustments | ||||
Cash and Cash Equivalents | $ 0 | |||
Loans | (1,552) | |||
Premises and equipment, net | 4,800 | |||
Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) | 22,630 | |||
Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) | (2,561) | |||
Others assets | 0 | |||
Deposits | 156 | |||
Other liabilities | 70 | |||
June 14, 2019 | ||||
Cash and cash equivalents | 551,250 | |||
Loans | 116,346 | |||
Premises and equipment, net | 22,430 | |||
Goodwill | 7,286 | |||
Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheet) | 22,630 | |||
Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) | 5,263 | |||
Other Assets | 559 | |||
Total assets | 725,764 | |||
Deposits | 725,173 | |||
Other Liabilities | 590 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 725,764 |
Bank Mutual Acquisition (Detail
Bank Mutual Acquisition (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||||
Fair value of liabilities assumed | $ 725,764 | $ 2,340,323 | $ 54 | |
BKMU Assets Acquired Liabilities Assumed Adjustments [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Cash and cash equivalents | $ 0 | |||
Investment securities | (6,238) | |||
Federal Home Loan Bank stock, at cost | 0 | |||
Loans | (48,043) | |||
Premises and equipment, net | 2,930 | |||
Bank owned life insurance | (24) | |||
Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheet) | 58,100 | |||
Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) | 199 | |||
Other Assets | 7,054 | |||
Deposits | 2,498 | |||
Other borrowings | 1,875 | |||
Other Liabilities | 4,487 | |||
BKMU Assets Acquired Liabilities Assumed [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Cash and cash equivalents | 78,052 | |||
Investment securities | 452,867 | |||
Federal Home Loan Bank stock, at cost | 20,026 | |||
Loans | 1,875,877 | |||
Premises and equipment, net | 42,689 | |||
Bank owned life insurance | 65,390 | |||
Goodwill | 175,499 | |||
Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheet) | 58,100 | |||
Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) | 4,848 | |||
Other Assets | 47,158 | |||
Total assets | 2,820,506 | |||
Deposits | 1,840,950 | |||
Other borrowings | 431,886 | |||
Other Liabilities | 65,982 | |||
Fair value of liabilities assumed | 2,338,818 | |||
Total consideration paid | $ 481,688 |
Acquisition Acquired Impaired L
Acquisition Acquired Impaired Loans (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable | |||
Interest component of expected cash flows (accretable discount) | $ (940) | $ (4,954) | |
BKMU Assets Acquired Liabilities Assumed [Member] | |||
Financing Receivable | |||
Contractual required principal and interest at acquisition | $ 1,923,920 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | (1,866) | ||
Expected cash flows at acquisition | 1,922,054 | ||
Interest component of expected cash flows (accretable discount) | (46,177) | ||
Fair value of acquired loans | 1,875,877 | ||
Acquired Performing Loans | BKMU Assets Acquired Liabilities Assumed [Member] | |||
Financing Receivable | |||
Contractual required principal and interest at acquisition | 1,899,932 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | 0 | ||
Expected cash flows at acquisition | 1,899,932 | ||
Interest component of expected cash flows (accretable discount) | (41,324) | ||
Fair value of acquired loans | 1,858,608 | ||
Acquired Impaired Loans | BKMU Assets Acquired Liabilities Assumed [Member] | |||
Financing Receivable | |||
Contractual required principal and interest at acquisition | 23,988 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | (1,866) | ||
Expected cash flows at acquisition | 22,122 | ||
Interest component of expected cash flows (accretable discount) | (4,853) | ||
Fair value of acquired loans | $ 17,269 |
Acquisition Narrative (Details)
Acquisition Narrative (Details) $ in Thousands | Jul. 25, 2019USD ($) | Jun. 14, 2019USD ($)branch | Feb. 01, 2018USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Common stock issued in acquisition | $ 488,408 | $ 7,151 | ||||||
Huntington National Bank | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | Jun. 14, 2019 | |||||||
Business Acquisition, Name of Acquired Entity | Huntington | |||||||
Business Combination, Control Obtained Description | The Corporation paid a 4% premium on acquired deposits. | |||||||
New Communities | branch | 13 | |||||||
Acquired Net Branches | branch | 14 | |||||||
Goodwill | $ 7,000 | $ 210 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||||
Bank Mutual [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | Feb. 1, 2018 | |||||||
Business Acquisition, Name of Acquired Entity | Bank Mutual | |||||||
Business Combination, Control Obtained Description | the Corporation completed its acquisition of Bank Mutual in a stock transaction | |||||||
Common stock issued in acquisition | $ 482,000 | |||||||
Consideration shares transferred | shares | 0.422 | |||||||
Common Stock Issued During Period, Shares, Acquisitions | shares | 19,500,000 | |||||||
Goodwill | $ 2,000 | $ 6,000 | $ 175,000 | |||||
First Staunton Bancshares | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Name of Acquired Entity | First Staunton | |||||||
Business Acquisition, Date of Acquisition Agreement | Jul. 25, 2019 | |||||||
Estimated Consideration Transferred | $ 76,000 |
Investment Securities, AFS and
Investment Securities, AFS and HTM Securities Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment securities available for sale | ||||
Amortized Cost | $ 3,251,950 | $ 4,041,902 | ||
Gross Unrealized Gains | 30,920 | 3,649 | ||
Gross Unrealized Losses | (20,284) | (98,610) | ||
Fair Value | 3,262,586 | 3,946,941 | ||
Investment securities held to maturity | ||||
Amortized Cost | 2,205,083 | 2,740,511 | ||
Gross Unrealized Gains | 79,744 | 17,593 | ||
Held-to-maturity, Gross Unrealized Loss | (8,363) | (47,835) | ||
Fair Value | 2,276,465 | 2,710,271 | ||
Transfer of held to maturity securities to available for sale securities (adoption of ASU 2019-04) | $ 692,000 | 692,414 | 0 | $ 0 |
U.S. Treasury securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 1,000 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Losses | (1) | |||
Fair Value | 999 | |||
Investment securities held to maturity | ||||
Amortized Cost | 999 | |||
Gross Unrealized Gains | 19 | |||
Held-to-maturity, Gross Unrealized Loss | 0 | |||
Fair Value | 1,018 | |||
Obligations of state and political subdivisions (municipal securities)(a) | ||||
Investment securities available for sale | ||||
Amortized Cost | 529,908 | |||
Gross Unrealized Gains | 16,269 | |||
Gross Unrealized Losses | (18) | |||
Fair Value | 546,160 | |||
Investment securities held to maturity | ||||
Amortized Cost | 1,418,569 | 1,790,683 | ||
Gross Unrealized Gains | 69,775 | 8,255 | ||
Held-to-maturity, Gross Unrealized Loss | (1,118) | (15,279) | ||
Fair Value | 1,487,227 | 1,783,659 | ||
Private-label | ||||
Investment securities available for sale | ||||
Amortized Cost | 1,007 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Losses | (4) | |||
Fair Value | 1,003 | |||
FFELP asset backed securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 270,178 | 297,347 | ||
Gross Unrealized Gains | 0 | 711 | ||
Gross Unrealized Losses | (6,485) | (698) | ||
Fair Value | 263,693 | 297,360 | ||
Fixed-income securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 3,000 | 3,000 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 3,000 | 3,000 | ||
FNMA/FHLMC [Member] | Residential Related Securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 131,158 | 296,296 | ||
Gross Unrealized Gains | 1,562 | 2,466 | ||
Gross Unrealized Losses | (59) | (3,510) | ||
Fair Value | 132,660 | 295,252 | ||
Investment securities held to maturity | ||||
Amortized Cost | 81,676 | 92,788 | ||
Gross Unrealized Gains | 1,759 | 169 | ||
Held-to-maturity, Gross Unrealized Loss | (15) | (1,795) | ||
Fair Value | 83,420 | 91,162 | ||
FNMA/FHLMC [Member] | Commercial mortgage-related securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 19,929 | |||
Gross Unrealized Gains | 1,799 | |||
Gross Unrealized Losses | 0 | |||
Fair Value | 21,728 | |||
Investment securities held to maturity | ||||
Amortized Cost | 0 | |||
Fair Value | 0 | |||
GNMA [Member] | Residential Related Securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 982,941 | 2,169,943 | ||
Gross Unrealized Gains | 3,887 | 473 | ||
Gross Unrealized Losses | (1,689) | (41,885) | ||
Fair Value | 985,139 | 2,128,531 | ||
Investment securities held to maturity | ||||
Amortized Cost | 269,523 | 351,606 | ||
Gross Unrealized Gains | 1,882 | 1,611 | ||
Held-to-maturity, Gross Unrealized Loss | (1,108) | (8,181) | ||
Fair Value | 270,296 | 345,035 | ||
GNMA [Member] | Commercial mortgage-related securities | ||||
Investment securities available for sale | ||||
Amortized Cost | 1,314,836 | 1,273,309 | ||
Gross Unrealized Gains | 7,403 | 0 | ||
Gross Unrealized Losses | (12,032) | (52,512) | ||
Fair Value | 1,310,207 | 1,220,797 | ||
Investment securities held to maturity | ||||
Amortized Cost | 434,317 | 505,434 | ||
Gross Unrealized Gains | 6,308 | 7,559 | ||
Held-to-maturity, Gross Unrealized Loss | (6,122) | (22,579) | ||
Fair Value | $ 434,503 | $ 490,414 |
Investment Securities, AFS an_2
Investment Securities, AFS and HTM Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 2,795 | |
Due after one year through five years | 32,399 | |
Due after five years through ten years | 317,292 | |
Due after ten years | 180,422 | |
Total debt securities | 532,908 | |
Investment securities available for sale, amortized cost | 3,251,950 | $ 4,041,902 |
Fair Value | ||
Due in one year or less | 2,800 | |
Due after one year through five years | 32,901 | |
Due after five years through ten years | 326,361 | |
Due after ten years | 187,098 | |
Total debt securities, AFS Fair Value | 549,160 | |
Investment securities available for sale, at fair value | $ 3,262,586 | 3,946,941 |
Ratio of Fair Value to Amortized Cost | 100.30% | |
Amortized Cost | ||
Due in one year or less | $ 29,033 | |
Due after one year through five years | 82,023 | |
Due after five years through ten years | 136,138 | |
Due after ten years | 1,172,373 | |
Total debt securities, HTM Amortized Cost | 1,419,568 | |
Amortized Cost | 2,205,083 | 2,740,511 |
Fair Value | ||
Due in one year or less | 29,218 | |
Due after one year through five years | 83,245 | |
Due after five years through ten years | 140,704 | |
Due after ten years | 1,235,077 | |
Total debt securities, HTM Fair Value | 1,488,245 | |
Debt Securities, Held-to-maturity, Fair Value | $ 2,276,465 | 2,710,271 |
Ratio of Fair Value to Amortized Cost | 103.20% | |
FFELP asset backed securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | $ 270,178 | |
Fair Value | ||
Investment securities available for sale, at fair value | 263,693 | |
Amortized Cost | ||
Amortized Cost | 0 | |
Fair Value | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | |
FNMA/FHLMC [Member] | Residential Related Securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 131,158 | 296,296 |
Fair Value | ||
Investment securities available for sale, at fair value | 132,660 | 295,252 |
Amortized Cost | ||
Amortized Cost | 81,676 | 92,788 |
Fair Value | ||
Debt Securities, Held-to-maturity, Fair Value | 83,420 | 91,162 |
FNMA/FHLMC [Member] | Commercial mortgage-related securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 19,929 | |
Fair Value | ||
Investment securities available for sale, at fair value | 21,728 | |
Amortized Cost | ||
Amortized Cost | 0 | |
Fair Value | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | |
GNMA [Member] | Residential Related Securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 982,941 | 2,169,943 |
Fair Value | ||
Investment securities available for sale, at fair value | 985,139 | 2,128,531 |
Amortized Cost | ||
Amortized Cost | 269,523 | 351,606 |
Fair Value | ||
Debt Securities, Held-to-maturity, Fair Value | 270,296 | 345,035 |
GNMA [Member] | Commercial mortgage-related securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 1,314,836 | 1,273,309 |
Fair Value | ||
Investment securities available for sale, at fair value | 1,310,207 | 1,220,797 |
Amortized Cost | ||
Amortized Cost | 434,317 | 505,434 |
Fair Value | ||
Debt Securities, Held-to-maturity, Fair Value | $ 434,503 | $ 490,414 |
Investment Securities, Gains, L
Investment Securities, Gains, Losses, and Proceeds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains on available for sale securities | $ 6,374 | $ 1,954 | $ 0 |
Gross gains on held to maturity securities | 0 | 0 | 439 |
Total gains | 6,374 | 1,954 | 439 |
Gross (losses) on available for sale securities | (13,861) | (3,938) | 0 |
Gross (losses) on held to maturity securities | 0 | 0 | (5) |
Total (losses) | (13,861) | (3,938) | (5) |
Write-up of equity securities without readily determinable fair values | 13,444 | 0 | 0 |
Investment securities gains (losses), net | 5,957 | (1,985) | 434 |
Proceeds from sales of investment securities | $ 1,367,476 | $ 601,130 | $ 18,467 |
Investment Securities, AFS an_3
Investment Securities, AFS and HTM Securities Gross Unrealized Losses (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ (7,843) | $ (5,262) |
Unrealized losses on available for sale securities, 12 months or more | (12,440) | (93,347) |
Total unrealized losses on available for sale securities | (20,284) | (98,610) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 834,616 | 613,612 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 748,487 | 3,009,417 |
Total fair value of unrealized losses on available for sale securities | $ 1,583,104 | $ 3,623,028 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 65 | 41 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 51 | 190 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (2,199) | $ (4,053) |
Unrealized losses on held to maturity securities, 12 months or more | (6,164) | (43,780) |
Total unrealized losses on held to maturity securities | (8,363) | (47,835) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 292,267 | 390,929 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 367,532 | 1,349,063 |
Total fair value of unrealized losses on held to maturity securities | $ 659,799 | $ 1,739,992 |
Held-to-maturity, Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions, less than 12 Months | security | 67 | 298 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, 12 Months or Longer | security | 36 | 865 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ 0 | |
Unrealized losses on available for sale securities, 12 months or more | (1) | |
Total unrealized losses on available for sale securities | (1) | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 0 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 999 | |
Total fair value of unrealized losses on available for sale securities | $ 999 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 0 | |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 1 | |
Obligations of state and political subdivisions (municipal securities)(a) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ (18) | |
Unrealized losses on available for sale securities, 12 months or more | 0 | |
Total unrealized losses on available for sale securities | (18) | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,225 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | |
Total fair value of unrealized losses on available for sale securities | $ 1,225 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 4 | |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (1,105) | $ (2,860) |
Unrealized losses on held to maturity securities, 12 months or more | (13) | (12,419) |
Total unrealized losses on held to maturity securities | (1,118) | (15,279) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 77,562 | 313,212 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 2,378 | 509,374 |
Total fair value of unrealized losses on held to maturity securities | $ 79,940 | $ 822,586 |
Obligations of state and political subdivisions (municipal securities)(a) | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 52 | 272 |
Obligations of state and political subdivisions (municipal securities)(a) | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 6 | 752 |
Private-label | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ (4) | |
Unrealized losses on available for sale securities, 12 months or more | 0 | |
Total unrealized losses on available for sale securities | (4) | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,003 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | |
Total fair value of unrealized losses on available for sale securities | $ 1,003 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 1 | |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | |
FFELP asset backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ (6,092) | $ (698) |
Unrealized losses on available for sale securities, 12 months or more | (393) | 0 |
Total unrealized losses on available for sale securities | (6,485) | (698) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 250,780 | 142,432 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 12,913 | 0 |
Total fair value of unrealized losses on available for sale securities | $ 263,693 | $ 142,432 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 19 | 13 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 2 | 0 |
Other debt securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ 0 | |
Unrealized losses on available for sale securities, 12 months or more | 0 | |
Total unrealized losses on available for sale securities | 0 | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 2,000 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | |
Total fair value of unrealized losses on available for sale securities | $ 2,000 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 2 | |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | |
FNMA/FHLMC [Member] | Residential Related Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ 0 | $ (31) |
Unrealized losses on available for sale securities, 12 months or more | (59) | (3,479) |
Total unrealized losses on available for sale securities | (59) | (3,510) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 0 | 17,993 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 34,807 | 189,405 |
Total fair value of unrealized losses on available for sale securities | $ 34,807 | $ 207,398 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 0 | 15 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 4 | 17 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (6) | $ (780) |
Unrealized losses on held to maturity securities, 12 months or more | (9) | (1,015) |
Total unrealized losses on held to maturity securities | (15) | (1,795) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 1,242 | 57,896 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 833 | 28,888 |
Total fair value of unrealized losses on held to maturity securities | $ 2,075 | $ 86,784 |
FNMA/FHLMC [Member] | Residential Related Securities | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 1 | 13 |
FNMA/FHLMC [Member] | Residential Related Securities | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 1 | 22 |
GNMA [Member] | Residential Related Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ (924) | $ (4,529) |
Unrealized losses on available for sale securities, 12 months or more | (766) | (37,355) |
Total unrealized losses on available for sale securities | (1,689) | (41,885) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 322,394 | 452,183 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 79,461 | 1,598,159 |
Total fair value of unrealized losses on available for sale securities | $ 401,856 | $ 2,050,342 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 18 | 12 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 3 | 79 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (1,059) | $ (414) |
Unrealized losses on held to maturity securities, 12 months or more | (49) | (7,767) |
Total unrealized losses on held to maturity securities | (1,108) | (8,181) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 187,261 | 19,822 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 6,587 | 320,387 |
Total fair value of unrealized losses on held to maturity securities | $ 193,849 | $ 340,209 |
GNMA [Member] | Residential Related Securities | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 12 | 13 |
GNMA [Member] | Residential Related Securities | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 8 | 66 |
GNMA [Member] | Commercial mortgage-related securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized losses on available for sale securities, less than 12 months | $ (810) | $ 0 |
Unrealized losses on available for sale securities, 12 months or more | (11,222) | (52,512) |
Total unrealized losses on available for sale securities | (12,032) | (52,512) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 258,218 | 0 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 621,307 | 1,220,854 |
Total fair value of unrealized losses on available for sale securities | $ 879,524 | $ 1,220,854 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 22 | 0 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 42 | 93 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (29) | $ 0 |
Unrealized losses on held to maturity securities, 12 months or more | (6,093) | (22,579) |
Total unrealized losses on held to maturity securities | (6,122) | (22,579) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 26,202 | 0 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 357,733 | 490,414 |
Total fair value of unrealized losses on held to maturity securities | $ 383,935 | $ 490,414 |
GNMA [Member] | Commercial mortgage-related securities | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 2 | 0 |
GNMA [Member] | Commercial mortgage-related securities | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 21 | 25 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Feb. 01, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Securities | ||||||||||
Debt Securities, Available-for-sale, Sold at Par Value | $ 108,000,000 | |||||||||
Investment Securities (Textuals) [Abstract] | ||||||||||
Transfer of held to maturity securities to available for sale securities (adoption of ASU 2019-04) | $ 692,000,000 | $ 692,414,000 | $ 0 | $ 0 | ||||||
Debt Securities AFS Principal Sold | 157,000,000 | |||||||||
Debt Securities, Available-for-sale, Gain (Loss) | $ 3,000,000 | |||||||||
Carrying amount of Securities Sold | $ 1,200,000,000 | |||||||||
Visa B Restricted Stock Donated | 42,039 | |||||||||
Visa Restricted Shares Owned | 77,000 | 77,000 | ||||||||
Debt Securities, Available-for-sale, Sold at Par Value | $ 108,000,000 | |||||||||
Debt Securities, Held-to-maturity, Sold, Amount | 18,000,000 | |||||||||
Debt Securities, Held-to-maturity, Sold, Realized Gain (Loss) | $ 434,000 | |||||||||
Pledged Financial Instruments, Not Separately Reported, Securities | $ 2,600,000,000 | 2,600,000,000 | 3,000,000,000 | |||||||
Federal Home Loan Bank Stock | 149,000,000 | 149,000,000 | 173,000,000 | |||||||
Federal Reserve Bank Stock | 78,000,000 | 78,000,000 | 77,000,000 | |||||||
Equity Securities with Readily Determined Fair Value | 2,000,000 | 2,000,000 | 2,000,000 | |||||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 13,000,000 | $ 13,000,000 | $ 0 | |||||||
Bank Mutual [Member] | ||||||||||
Investment Securities | ||||||||||
Debt Securities, Available-for-sale, Sold at Par Value | $ 453,000,000 | |||||||||
Investment Securities (Textuals) [Abstract] | ||||||||||
Debt Securities, Available-for-sale, Sold at Par Value | $ 453,000,000 | |||||||||
Securities Sold [Member] | ||||||||||
Investment Securities | ||||||||||
Taxable Equivalent Yield | 3.08% | |||||||||
Reinvestment [Member] | ||||||||||
Investment Securities | ||||||||||
Taxable Equivalent Yield | 3.51% | |||||||||
Commercial mortgage-related securities | GNMA [Member] | ||||||||||
Investment Securities | ||||||||||
Debt Securities, Available-for-sale, Sold at Par Value | $ 40,000,000 | |||||||||
Investment Securities (Textuals) [Abstract] | ||||||||||
Debt Securities, Available-for-sale, Sold at Par Value | $ 40,000,000 |
Loans, Loan Composition (Detail
Loans, Loan Composition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | $ 22,821,440 | $ 22,940,429 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 7,354,594 | 7,398,044 | |
Commercial real estate - owner occupied | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 911,265 | 920,443 | |
Commercial and business lending | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 8,265,858 | 8,318,487 | |
Commercial real estate - investor | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 3,794,517 | 3,751,554 | |
Real estate construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 1,420,900 | 1,335,031 | |
Commercial real estate lending | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 5,215,417 | 5,086,585 | |
Total commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 13,481,275 | 13,405,072 | |
Residential mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 8,136,980 | 8,277,712 | |
Approximate Carrying Amount of Loans Sold | approximately $240 million | ||
Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 852,025 | 894,473 | |
Other consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 351,159 | 363,171 | |
Total consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 9,340,164 | 9,535,357 | |
Carrying Amount Of Loans Sold | $ 33,000 | ||
Bank Mutual [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Purchased credit-impaired loans | $ 2,000 | $ 5,000 |
Loans, Related Party Loan Rollf
Loans, Related Party Loan Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at beginning of year | $ 17,831 | $ 20,260 |
New loans | 3,673 | 3,076 |
Repayments | (8,053) | (5,017) |
Change due to status of executive officers and directors | 3,320 | (489) |
Balance at end of year | $ 16,772 | $ 17,831 |
Loans, Loans by Credit Quality
Loans, Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | $ 22,821,440 | $ 22,940,429 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 22,294,939 | 22,438,605 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 247,022 | 123,988 | |
Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 161,097 | 249,935 | |
Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 118,380 | 127,901 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 7,354,594 | 7,398,044 | |
Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 7,118,448 | 7,162,370 | |
Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 79,525 | 78,075 | |
Commercial and industrial | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 110,308 | 116,578 | |
Commercial and industrial | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 46,312 | 41,021 | |
Commercial real estate - owner occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 911,265 | 920,443 | |
Commercial real estate - owner occupied | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 866,193 | 854,265 | |
Commercial real estate - owner occupied | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 25,115 | 6,257 | |
Commercial real estate - owner occupied | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 19,889 | 55,964 | |
Commercial real estate - owner occupied | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 67 | 3,957 | |
Commercial and business lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 8,265,858 | 8,318,487 | |
Commercial and business lending | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 7,984,641 | 8,016,635 | |
Commercial and business lending | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 104,641 | 84,332 | |
Commercial and business lending | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 130,197 | 172,542 | |
Commercial and business lending | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 46,380 | 44,978 | |
Commercial real estate - investor | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 3,794,517 | 3,751,554 | |
Commercial real estate - investor | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 3,620,785 | 3,653,642 | |
Commercial real estate - investor | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 139,873 | 28,479 | |
Commercial real estate - investor | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 29,449 | 67,481 | |
Commercial real estate - investor | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 4,409 | 1,952 | |
Real estate construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 1,420,900 | 1,335,031 | |
Real estate construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 1,420,374 | 1,321,447 | |
Real estate construction | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 33 | 8,771 | |
Real estate construction | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 0 | 3,834 | |
Real estate construction | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 493 | 979 | |
Commercial real estate lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 5,215,417 | 5,086,585 | |
Commercial real estate lending | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 5,041,159 | 4,975,089 | |
Commercial real estate lending | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 139,906 | 37,249 | |
Commercial real estate lending | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 29,449 | 71,315 | |
Commercial real estate lending | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 4,902 | 2,931 | |
Total commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 13,481,275 | 13,405,072 | |
Total commercial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 13,025,800 | 12,991,724 | |
Total commercial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 244,547 | 121,582 | |
Total commercial | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 159,646 | 243,856 | |
Total commercial | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 51,282 | 47,909 | |
Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 8,136,980 | 8,277,712 | |
Approximate Carrying Amount of Loans Sold | approximately $240 million | ||
Residential mortgage | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 8,077,122 | 8,203,729 | |
Residential mortgage | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 563 | 434 | |
Residential mortgage | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 1,451 | 5,975 | |
Residential mortgage | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 57,844 | 67,574 | |
Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 852,025 | 894,473 | |
Home equity | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 841,757 | 880,808 | |
Home equity | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 1,164 | 1,223 | |
Home equity | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 0 | 103 | |
Home equity | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 9,104 | 12,339 | |
Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 351,159 | 363,171 | |
Other consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 350,260 | 362,343 | |
Other consumer | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 748 | 749 | |
Other consumer | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 0 | 0 | |
Other consumer | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 152 | 79 | |
Total consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 9,340,164 | 9,535,357 | |
Carrying Amount Of Loans Sold | $ 33,000 | ||
Total consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 9,269,139 | 9,446,881 | |
Carrying Amount Of Loans Sold | 21,000 | ||
Total consumer | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 2,475 | 2,406 | |
Total consumer | Potential Problem | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 1,451 | 6,078 | |
Total consumer | Nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | $ 67,099 | $ 79,992 | |
Carrying Amount Of Loans Sold | $ 12,000 |
Loans, Loans by Past Due Status
Loans, Loans by Past Due Status (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summarized details of Loans | |||
Current | $ 22,679,696 | $ 22,785,019 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 118,380 | 127,901 | |
Loans and Leases Receivable, Net of Deferred Income | 22,821,440 | 22,940,429 | |
Nonaccrual Loans, Current Portion | $ 48,000 | $ 74,000 | |
Percent of current nonaccrual loans | 41.00% | 58.00% | |
Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | $ 22,294,939 | $ 22,438,605 | |
Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 118,380 | 127,901 | |
30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 18,188 | 21,550 | |
60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 2,916 | 3,795 | |
90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 2,259 | 2,165 | |
30-89 Days Past Due | |||
Summarized details of Loans | |||
Approximate Carrying Amount of Loans Sold | approximately $200,000 | ||
Commercial and industrial | |||
Summarized details of Loans | |||
Current | 7,307,118 | 7,356,187 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 46,312 | 41,021 | |
Loans and Leases Receivable, Net of Deferred Income | 7,354,594 | 7,398,044 | |
Commercial and industrial | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 7,118,448 | 7,162,370 | |
Commercial and industrial | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 46,312 | 41,021 | |
Commercial and industrial | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 576 | 187 | |
Commercial and industrial | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 245 | 338 | |
Commercial and industrial | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 342 | 311 | |
Commercial real estate - owner occupied | |||
Summarized details of Loans | |||
Current | 909,828 | 913,787 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 67 | 3,957 | |
Loans and Leases Receivable, Net of Deferred Income | 911,265 | 920,443 | |
Commercial real estate - owner occupied | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 866,193 | 854,265 | |
Commercial real estate - owner occupied | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 67 | 3,957 | |
Commercial real estate - owner occupied | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,369 | 2,580 | |
Commercial real estate - owner occupied | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 119 | |
Commercial real estate - owner occupied | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 0 | |
Commercial and business lending | |||
Summarized details of Loans | |||
Current | 8,216,947 | 8,269,974 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 46,380 | 44,978 | |
Loans and Leases Receivable, Net of Deferred Income | 8,265,858 | 8,318,487 | |
Commercial and business lending | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 7,984,641 | 8,016,635 | |
Commercial and business lending | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 46,380 | 44,978 | |
Commercial and business lending | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,945 | 2,767 | |
Commercial and business lending | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 245 | 457 | |
Commercial and business lending | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 342 | 311 | |
Commercial real estate - investor | |||
Summarized details of Loans | |||
Current | 3,788,296 | 3,745,835 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,409 | 1,952 | |
Loans and Leases Receivable, Net of Deferred Income | 3,794,517 | 3,751,554 | |
Commercial real estate - investor | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 3,620,785 | 3,653,642 | |
Commercial real estate - investor | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 4,409 | 1,952 | |
Commercial real estate - investor | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,812 | 2,954 | |
Commercial real estate - investor | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 813 | |
Commercial real estate - investor | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 0 | |
Real estate construction | |||
Summarized details of Loans | |||
Current | 1,420,310 | 1,333,722 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 493 | 979 | |
Loans and Leases Receivable, Net of Deferred Income | 1,420,900 | 1,335,031 | |
Real estate construction | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 1,420,374 | 1,321,447 | |
Real estate construction | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 493 | 979 | |
Real estate construction | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 64 | 330 | |
Real estate construction | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 33 | 0 | |
Real estate construction | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 0 | |
Commercial real estate lending | |||
Summarized details of Loans | |||
Current | 5,208,606 | 5,079,557 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,902 | 2,931 | |
Loans and Leases Receivable, Net of Deferred Income | 5,215,417 | 5,086,585 | |
Commercial real estate lending | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,876 | 3,284 | |
Commercial real estate lending | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 33 | 813 | |
Commercial real estate lending | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 0 | |
Total commercial | |||
Summarized details of Loans | |||
Current | 13,425,552 | 13,349,531 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 51,282 | 47,909 | |
Loans and Leases Receivable, Net of Deferred Income | 13,481,275 | 13,405,072 | |
Total commercial | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 3,821 | 6,051 | |
Total commercial | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 278 | 1,270 | |
Total commercial | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 342 | 311 | |
Residential mortgage | |||
Summarized details of Loans | |||
Current | 8,069,863 | 8,200,432 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 57,844 | 67,574 | |
Loans and Leases Receivable, Net of Deferred Income | 8,136,980 | 8,277,712 | |
Approximate Carrying Amount of Loans Sold | approximately $240 million | ||
Residential mortgage | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 8,077,122 | 8,203,729 | |
Residential mortgage | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 57,844 | 67,574 | |
Residential mortgage | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 8,749 | 9,272 | |
Residential mortgage | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 525 | 434 | |
Residential mortgage | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 0 | |
Home equity | |||
Summarized details of Loans | |||
Current | 837,274 | 876,085 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 9,104 | 12,339 | |
Loans and Leases Receivable, Net of Deferred Income | 852,025 | 894,473 | |
Home equity | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 841,757 | 880,808 | |
Home equity | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 9,104 | 12,339 | |
Home equity | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 4,483 | 4,826 | |
Home equity | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,164 | 1,223 | |
Home equity | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 0 | 0 | |
Other consumer | |||
Summarized details of Loans | |||
Current | 347,007 | 358,970 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 152 | 79 | |
Loans and Leases Receivable, Net of Deferred Income | 351,159 | 363,171 | |
Other consumer | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 350,260 | 362,343 | |
Other consumer | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 152 | 79 | |
Other consumer | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,135 | 1,401 | |
Other consumer | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 949 | 868 | |
Other consumer | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,917 | 1,853 | |
Total consumer | |||
Summarized details of Loans | |||
Current | 9,254,144 | 9,435,487 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 67,099 | 79,992 | |
Loans and Leases Receivable, Net of Deferred Income | 9,340,164 | 9,535,357 | |
Total consumer | 30-59 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 14,366 | 15,499 | |
Total consumer | 60-89 Days Past Due | |||
Summarized details of Loans | |||
Total Past Due | 2,638 | 2,525 | |
Total consumer | 90 Days or More Past Due | |||
Summarized details of Loans | |||
Total Past Due | 1,917 | 1,853 | |
Total consumer | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 9,340,164 | 9,535,357 | |
Carrying Amount Of Loans Sold | $ 33,000 | ||
Total consumer | Pass | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 9,269,139 | 9,446,881 | |
Carrying Amount Of Loans Sold | 21,000 | ||
Total consumer | Nonaccrual | |||
Summarized details of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | $ 67,099 | $ 79,992 | |
Carrying Amount Of Loans Sold | $ 12,000 |
Loans, Impaired Loans Recorded
Loans, Impaired Loans Recorded Investment, Unpaid Principal Balance, Related Allowance, Average Recorded Investment, and Interest Income Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 76,102 | $ 96,609 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 95,033 | 102,483 |
Related Allowance | 16,165 | 15,304 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 77,235 | 110,079 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 3,012 | 3,699 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 33,941 | 37,081 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 52,987 | 62,283 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 36,462 | 35,627 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 616 | |
Interest Income Recognized | (73) | |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 110,043 | 133,690 |
Unpaid Principal Balance | 148,020 | 164,766 |
Average Recorded Investment | 113,697 | 145,707 |
Interest Income Recognized | $ 3,628 | $ 3,626 |
Net Recorded Investment of the Impaired Loans | 63.00% | 72.00% |
Bank Mutual [Member] | ||
Total Impaired Loans Individually Evaluated [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income, Purchased Credit Impaired Loans And Covered Loans | $ 2,000 | $ 5,000 |
Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 16,165 | 15,304 |
Commercial and industrial | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 47,249 | 40,747 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 63,346 | 42,131 |
Related Allowance | 12,010 | 5,721 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 45,290 | 52,461 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1,832 | 1,167 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 14,787 | 22,406 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 33,438 | 45,024 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 20,502 | 21,352 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 63 | |
Interest Income Recognized | (344) | |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 62,035 | 63,153 |
Unpaid Principal Balance | 96,784 | 87,155 |
Average Recorded Investment | 65,792 | 73,813 |
Interest Income Recognized | 1,895 | 823 |
Commercial and industrial | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 12,010 | 5,721 |
Commercial real estate - owner occupied | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,676 | 2,080 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,682 | 2,087 |
Related Allowance | 19 | 24 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,774 | 2,179 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 88 | 104 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 3,772 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | 4,823 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 3,975 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 1,676 | 5,852 |
Unpaid Principal Balance | 1,682 | 6,910 |
Average Recorded Investment | 1,774 | 6,154 |
Interest Income Recognized | 88 | 104 |
Commercial real estate - owner occupied | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 19 | 24 |
Commercial and business lending | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 48,924 | 42,827 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 65,028 | 44,218 |
Related Allowance | 12,029 | 5,745 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 47,064 | 54,640 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1,919 | 1,271 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 14,787 | 26,178 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 33,438 | 49,847 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 20,502 | 25,327 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 63 | |
Interest Income Recognized | (344) | |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 63,711 | 69,005 |
Unpaid Principal Balance | 98,466 | 94,065 |
Average Recorded Investment | 67,566 | 79,967 |
Interest Income Recognized | 1,982 | 927 |
Commercial and business lending | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 12,029 | 5,745 |
Commercial real estate - investor | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 928 | 799 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,104 | 805 |
Related Allowance | 15 | 28 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 950 | 827 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 15 | 38 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,705 | 1,585 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,705 | 2,820 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,980 | 980 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 159 | 68 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 4,633 | 2,384 |
Unpaid Principal Balance | 5,808 | 3,625 |
Average Recorded Investment | 4,931 | 1,807 |
Interest Income Recognized | 174 | 106 |
Commercial real estate - investor | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 15 | 28 |
Real estate construction | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 477 | 510 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 559 | 589 |
Related Allowance | 67 | 75 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 494 | 533 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 30 | 32 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 477 | 510 |
Unpaid Principal Balance | 559 | 589 |
Average Recorded Investment | 494 | 533 |
Interest Income Recognized | 30 | 32 |
Real estate construction | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 67 | 75 |
Commercial real estate lending | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,405 | 1,309 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,663 | 1,394 |
Related Allowance | 82 | 103 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,445 | 1,360 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 45 | 70 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,705 | 1,585 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,705 | 2,820 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,980 | 980 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 159 | 68 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 5,110 | 2,894 |
Unpaid Principal Balance | 6,367 | 4,214 |
Average Recorded Investment | 5,425 | 2,340 |
Interest Income Recognized | 204 | 138 |
Commercial real estate lending | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 82 | 103 |
Total commercial | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 50,329 | 44,136 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 67,691 | 45,612 |
Related Allowance | 12,111 | 5,848 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 48,509 | 56,000 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1,965 | 1,341 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 18,491 | 27,763 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 37,142 | 52,667 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 24,482 | 26,307 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 222 | |
Interest Income Recognized | (276) | |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 68,820 | 71,899 |
Unpaid Principal Balance | 104,833 | 98,279 |
Average Recorded Investment | 72,991 | 82,307 |
Interest Income Recognized | 2,186 | 1,065 |
Total commercial | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 12,111 | 5,848 |
Residential mortgage | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 21,450 | 41,691 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 22,625 | 45,149 |
Related Allowance | 2,740 | 6,023 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 23,721 | 42,687 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 856 | 1,789 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 14,104 | 8,795 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 14,461 | 9,074 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 10,962 | 8,790 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 373 | 203 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 35,554 | 50,486 |
Unpaid Principal Balance | 37,087 | 54,223 |
Average Recorded Investment | 34,683 | 51,477 |
Interest Income Recognized | 1,229 | 1,992 |
Residential mortgage | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 2,740 | 6,023 |
Home equity | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,076 | 9,601 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 3,468 | 10,539 |
Related Allowance | 1,190 | 3,312 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,756 | 10,209 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 191 | 566 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,346 | 523 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,383 | 542 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,017 | 530 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 21 | 0 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 4,422 | 10,124 |
Unpaid Principal Balance | 4,851 | 11,081 |
Average Recorded Investment | 4,773 | 10,739 |
Interest Income Recognized | 211 | 566 |
Home equity | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 1,190 | 3,312 |
Other consumer | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,247 | 1,181 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,249 | 1,183 |
Related Allowance | 125 | 121 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,250 | 1,184 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1 | 3 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 1,247 | 1,181 |
Unpaid Principal Balance | 1,249 | 1,183 |
Average Recorded Investment | 1,250 | 1,184 |
Interest Income Recognized | 1 | 3 |
Other consumer | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | 125 | 121 |
Total consumer | ||
Loans with a Related Allowance [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 25,773 | 52,473 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 27,342 | 56,871 |
Related Allowance | 4,055 | 9,456 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 28,726 | 54,080 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1,047 | 2,358 |
Loans with no Related Allowance [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 15,450 | 9,318 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 15,845 | 9,616 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 11,979 | 9,320 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 394 | 203 |
Total Impaired Loans Individually Evaluated [Line Items] | ||
Recorded Investment | 41,223 | 61,791 |
Unpaid Principal Balance | 43,187 | 66,487 |
Average Recorded Investment | 40,706 | 63,400 |
Interest Income Recognized | 1,441 | 2,561 |
Total consumer | Loans with a related allowance | ||
Loans with a Related Allowance [Line Items] | ||
Related Allowance | $ 4,055 | $ 9,456 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings Performing and Nonaccrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | $ 26,041 | $ 53,263 | $ 74,618 | |
Nonaccrual Restructured Loans | 22,494 | 26,292 | 23,486 | |
Total consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Carrying Amount Of Loans Sold | $ 33,000 | |||
Total consumer | Pass | ||||
Financing Receivable, Modifications [Line Items] | ||||
Carrying Amount Of Loans Sold | 21,000 | |||
Total consumer | Nonaccrual | ||||
Financing Receivable, Modifications [Line Items] | ||||
Carrying Amount Of Loans Sold | 12,000 | |||
Commercial and industrial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 16,678 | 25,478 | 30,047 | |
Nonaccrual Restructured Loans | 7,376 | 249 | 1,776 | |
Commercial real estate - owner occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 1,676 | 2,080 | 3,989 | |
Nonaccrual Restructured Loans | 0 | 0 | 0 | |
Commercial real estate - investor | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 293 | 799 | 14,389 | |
Nonaccrual Restructured Loans | 0 | 933 | 0 | |
Real estate construction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 298 | 311 | 310 | |
Nonaccrual Restructured Loans | 179 | 198 | 157 | |
Residential mortgage | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 3,955 | 16,036 | 17,068 | |
Nonaccrual Restructured Loans | 13,035 | 22,279 | 18,991 | |
Carrying Amount Of Loans Sold | 18,000 | |||
Residential mortgage | Nonaccrual | ||||
Financing Receivable, Modifications [Line Items] | ||||
Carrying Amount Of Loans Sold | 7,000 | |||
Home equity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 1,896 | 7,385 | 7,705 | |
Nonaccrual Restructured Loans | 1,904 | 2,627 | 2,537 | |
Carrying Amount Of Loans Sold | $ 3,000 | |||
Other consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Performing Restructured Loans | 1,246 | 1,174 | 1,110 | |
Nonaccrual Restructured Loans | $ 1 | $ 6 | $ 25 |
Loans, Loans Modified in a Trou
Loans, Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 85 | 86 | 77 |
Recorded Investment | $ 15,940 | $ 11,429 | $ 9,426 |
Unpaid Principal Balance | $ 16,150 | $ 11,792 | $ 11,900 |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 6 | 5 | 8 |
Recorded Investment | $ 7,588 | $ 1,315 | $ 3,991 |
Unpaid Principal Balance | $ 7,703 | $ 1,330 | $ 6,339 |
Commercial real estate - owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | 2 |
Recorded Investment | $ 0 | $ 0 | $ 690 |
Unpaid Principal Balance | $ 0 | $ 0 | $ 690 |
Commercial real estate - investor | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 2 | 0 |
Recorded Investment | $ 0 | $ 1,393 | $ 0 |
Unpaid Principal Balance | $ 0 | $ 1,472 | $ 0 |
Real estate construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 1 | 0 |
Recorded Investment | $ 77 | $ 78 | $ 0 |
Unpaid Principal Balance | $ 77 | $ 80 | $ 0 |
Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 53 | 41 | 45 |
Recorded Investment | $ 7,436 | $ 6,977 | $ 4,238 |
Unpaid Principal Balance | $ 7,517 | $ 7,210 | $ 4,364 |
Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 24 | 34 | 22 |
Recorded Investment | $ 831 | $ 1,649 | $ 507 |
Unpaid Principal Balance | $ 845 | $ 1,681 | $ 507 |
Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 3 | 0 |
Recorded Investment | $ 8 | $ 17 | $ 0 |
Unpaid Principal Balance | $ 8 | $ 19 | $ 0 |
Loans, Troubled Debt Restruct_2
Loans, Troubled Debt Restructurings Subsequent Default (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 66 | 55 | 66 |
Recorded Investment | $ | $ 6,959 | $ 5,241 | $ 3,879 |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 3 | 2 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Commercial real estate - investor | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 0 | 0 |
Recorded Investment | $ | $ 461 | $ 0 | $ 0 |
Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 38 | 20 | 36 |
Recorded Investment | $ | $ 5,630 | $ 3,553 | $ 3,137 |
Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 27 | 32 | 27 |
Recorded Investment | $ | $ 868 | $ 1,688 | $ 735 |
Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 7 |
Loans, Changes in the Allowance
Loans, Changes in the Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | $ 238,023 | $ 265,880 |
Charge offs | (74,313) | (50,536) |
Recoveries | 19,161 | 20,179 |
Net charge offs | (55,152) | (30,358) |
Provision for loan losses | 18,500 | 2,500 |
Balance at end of period | 201,371 | 238,023 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 16,165 | 15,304 |
Collectively evaluated for impairment | 185,205 | 222,719 |
Balance at end of period | 201,371 | 238,023 |
Loans: | ||
Individually evaluated for impairment | 110,043 | 133,690 |
Collectively evaluated for impairment | 22,709,845 | 22,801,887 |
Acquired and accounted for under ASC 310-30(a) | 1,552 | 4,853 |
Loans and Leases Receivable, Net of Deferred Income | 22,821,440 | 22,940,429 |
Commercial and industrial | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 108,835 | 123,068 |
Charge offs | (63,315) | (30,837) |
Recoveries | 11,875 | 13,714 |
Net charge offs | (51,441) | (17,123) |
Provision for loan losses | 33,738 | 2,890 |
Balance at end of period | 91,133 | 108,835 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 12,010 | 5,721 |
Collectively evaluated for impairment | 79,123 | 103,114 |
Balance at end of period | 91,133 | 108,835 |
Loans: | ||
Individually evaluated for impairment | 62,035 | 63,153 |
Collectively evaluated for impairment | 7,292,217 | 7,331,898 |
Acquired and accounted for under ASC 310-30(a) | 342 | 2,994 |
Loans and Leases Receivable, Net of Deferred Income | 7,354,594 | 7,398,044 |
Commercial real estate - owner occupied | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 9,255 | 10,352 |
Charge offs | (222) | (1,363) |
Recoveries | 2,795 | 639 |
Net charge offs | 2,573 | (724) |
Provision for loan losses | (1,543) | (373) |
Balance at end of period | 10,284 | 9,255 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 19 | 24 |
Collectively evaluated for impairment | 10,265 | 9,231 |
Balance at end of period | 10,284 | 9,255 |
Loans: | ||
Individually evaluated for impairment | 1,676 | 5,852 |
Collectively evaluated for impairment | 909,010 | 913,708 |
Acquired and accounted for under ASC 310-30(a) | 579 | 883 |
Loans and Leases Receivable, Net of Deferred Income | 911,265 | 920,443 |
Commercial real estate - investor | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 40,844 | 41,059 |
Charge offs | 0 | (7,914) |
Recoveries | 31 | 668 |
Net charge offs | 31 | (7,246) |
Provision for loan losses | (361) | 7,031 |
Balance at end of period | 40,514 | 40,844 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 15 | 28 |
Collectively evaluated for impairment | 40,498 | 40,816 |
Balance at end of period | 40,514 | 40,844 |
Loans: | ||
Individually evaluated for impairment | 4,633 | 2,384 |
Collectively evaluated for impairment | 3,789,755 | 3,748,883 |
Acquired and accounted for under ASC 310-30(a) | 129 | 287 |
Loans and Leases Receivable, Net of Deferred Income | 3,794,517 | 3,751,554 |
Real estate construction | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 28,240 | 34,370 |
Charge offs | (60) | (298) |
Recoveries | 302 | 446 |
Net charge offs | 243 | 149 |
Provision for loan losses | (3,568) | (6,279) |
Balance at end of period | 24,915 | 28,240 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 67 | 75 |
Collectively evaluated for impairment | 24,848 | 28,165 |
Balance at end of period | 24,915 | 28,240 |
Loans: | ||
Individually evaluated for impairment | 477 | 510 |
Collectively evaluated for impairment | 1,420,416 | 1,334,500 |
Acquired and accounted for under ASC 310-30(a) | 7 | 21 |
Loans and Leases Receivable, Net of Deferred Income | 1,420,900 | 1,335,031 |
Residential mortgage | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 25,595 | 29,607 |
Charge offs | (3,322) | (1,627) |
Recoveries | 692 | 1,271 |
Net charge offs | (2,630) | (355) |
Provision for loan losses | (6,005) | (3,657) |
Balance at end of period | 16,960 | 25,595 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 2,740 | 6,023 |
Collectively evaluated for impairment | 14,220 | 19,572 |
Balance at end of period | 16,960 | 25,595 |
Loans: | ||
Individually evaluated for impairment | 35,554 | 50,486 |
Collectively evaluated for impairment | 8,100,958 | 8,226,642 |
Acquired and accounted for under ASC 310-30(a) | 469 | 584 |
Loans and Leases Receivable, Net of Deferred Income | 8,136,980 | 8,277,712 |
Home equity | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 19,266 | 22,126 |
Charge offs | (1,846) | (3,236) |
Recoveries | 2,599 | 2,628 |
Net charge offs | 753 | (608) |
Provision for loan losses | (9,093) | (2,252) |
Balance at end of period | 10,926 | 19,266 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 1,190 | 3,312 |
Collectively evaluated for impairment | 9,737 | 15,954 |
Balance at end of period | 10,926 | 19,266 |
Loans: | ||
Individually evaluated for impairment | 4,422 | 10,124 |
Collectively evaluated for impairment | 847,577 | 884,266 |
Acquired and accounted for under ASC 310-30(a) | 26 | 83 |
Loans and Leases Receivable, Net of Deferred Income | 852,025 | 894,473 |
Other consumer | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 5,988 | 5,298 |
Charge offs | (5,548) | (5,261) |
Recoveries | 868 | 812 |
Net charge offs | (4,681) | (4,448) |
Provision for loan losses | 5,332 | 5,138 |
Balance at end of period | 6,639 | 5,988 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 125 | 121 |
Collectively evaluated for impairment | 6,514 | 5,867 |
Balance at end of period | 6,639 | 5,988 |
Loans: | ||
Individually evaluated for impairment | 1,247 | 1,181 |
Collectively evaluated for impairment | 349,912 | 361,990 |
Acquired and accounted for under ASC 310-30(a) | 0 | 0 |
Loans and Leases Receivable, Net of Deferred Income | $ 351,159 | $ 363,171 |
Loans, Changes in the Allowan_2
Loans, Changes in the Allowance for Loan Losses by Oil and Gas Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of year | $ 238,023 | $ 265,880 |
Charge offs | (74,313) | (50,536) |
Recoveries | 19,161 | 20,179 |
Net charge offs | (55,152) | (30,358) |
Provision for Loan Losses | 18,500 | 2,500 |
Balance at end of period | 201,371 | 238,023 |
Allowance for loan losses | ||
Individually evaluated | 16,165 | 15,304 |
Collectively evaluated | 185,205 | 222,719 |
Balance at end of period | 201,371 | 238,023 |
Loans | ||
Individually evaluated | 110,043 | 133,690 |
Collectively evaluated | 22,709,845 | 22,801,887 |
Loans and Leases Receivable, Net of Deferred Income | 22,821,440 | 22,940,429 |
Oil and Gas Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of year | 12,000 | 27,000 |
Charge offs | (50,000) | (24,000) |
Recoveries | 5,000 | 6,000 |
Net charge offs | (44,000) | (17,000) |
Provision for Loan Losses | 45,000 | 2,000 |
Balance at end of period | 12,000 | 12,000 |
Allowance for loan losses | ||
Individually evaluated | 3,000 | 0 |
Collectively evaluated | 9,000 | 12,000 |
Balance at end of period | $ 12,000 | $ 12,000 |
Percent of Loans | 2.56% | 1.62% |
Loans | ||
Individually evaluated | $ 23,000 | $ 22,000 |
Collectively evaluated | 460,000 | 725,000 |
Loans and Leases Receivable, Net of Deferred Income | $ 484,000 | $ 747,000 |
Loans, Changes in the Allowan_3
Loans, Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in the Allowance for Unfunded Commitments | |||
Balance at beginning of period | $ 24,000 | ||
Balance at end of period | 22,000 | $ 24,000 | |
Allowance for Unfunded Commitments | |||
Change in the Allowance for Unfunded Commitments | |||
Balance at beginning of period | 24,336 | 24,400 | $ 25,400 |
Provision for unfunded commitments | (2,500) | (2,500) | (1,000) |
Balance at end of period | 21,907 | 24,336 | 24,400 |
Amount Recorded at Acquisition [Member] | Allowance for Unfunded Commitments | |||
Change in the Allowance for Unfunded Commitments | |||
Amount recorded at acquisition | $ 70 | $ 2,436 | $ 0 |
Loans Changes in Accretable Yie
Loans Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 1,482 | $ 0 |
Purchases | 0 | 4,853 |
Accretion | (940) | (4,954) |
Net reclassification from non-accretable yield | 23 | 1,605 |
Other(a) | 0 | (22) |
End Balance | $ 568 | $ 1,482 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 15,940 | $ 11,429 | $ 9,426 |
Restructured Loans Subsequently Accruing | 3,000 | ||
Ytd Restructured Loans Still On Nonaccrual | 13,000 | ||
Loans and Leases Receivable, Impaired, Commitment to Lend | 3,000 | ||
UnaccretedPurchaseDiscount | 12,000 | 20,000 | |
UnaccretedPurchaseDiscount_PerformingLoans | $ 12,000 | 18,000 | |
Unaccreted Purchase Discount Nonperforming Loans | less than $1 million | ||
UnaccretedPurchaseDiscount_NonPerformingLoans | $ 2,000 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Summary of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of core deposit intangibles and other intangibles | |||
Amortization of Intangible Assets | $ 9,948 | $ 8,159 | $ 1,959 |
Core Deposits [Member] | |||
Summary of core deposit intangibles and other intangibles | |||
Gross carrying amount | 80,730 | 58,100 | 4,385 |
Accumulated amortization | (12,456) | (5,326) | (4,385) |
Net book value | 68,274 | 52,774 | 0 |
Amortization of Intangible Assets | 7,130 | 5,326 | 112 |
Adjustments to Core Deposits [Member] | |||
Summary of core deposit intangibles and other intangibles | |||
Additions during the period | 22,630 | 58,100 | 0 |
Other Intangible Assets [Member] | |||
Summary of core deposit intangibles and other intangibles | |||
Gross carrying amount | 44,887 | 44,931 | 34,572 |
Reductions due to sale | (217) | (43) | 0 |
Accumulated amortization | (24,643) | (21,825) | (18,992) |
Net book value | 20,027 | 23,062 | 15,580 |
Additions during the period | 0 | 10,359 | 2,162 |
Amortization of Intangible Assets | $ 2,818 | $ 2,833 | $ 1,847 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Mortgage Servicing Rights Roll-Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage servicing rights: | |||
Mortgage servicing rights at beginning of year | $ 68,433 | $ 59,168 | $ 62,085 |
Additions from acquisition | 0 | 8,136 | 0 |
Additions | 11,606 | 10,722 | 7,167 |
Amortization | (12,432) | (9,594) | (10,084) |
Mortgage servicing rights at end of year | 67,607 | 68,433 | 59,168 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Valuation allowance at beginning of year | (239) | (784) | (609) |
(Additions) recoveries, net | (63) | 545 | (175) |
Valuation allowance at end of year | (302) | (239) | (784) |
Mortgage servicing rights, net | 67,306 | 68,193 | 58,384 |
Fair value of mortgage servicing rights | 72,532 | 81,012 | 64,387 |
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ 8,484,977 | $ 8,600,983 | $ 7,646,846 |
Mortgage servicing rights, net to servicing portfolio | 0.79% | 0.79% | 0.76% |
Mortgage servicing rights expense (a) | $ 12,494 | $ 9,049 | $ 10,259 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Core Deposits [Member] | |||
Estimated future amortization expense | |||
Year ending December 31, 2020 | $ 8,073 | ||
Year ending December 31, 2021 | 8,073 | ||
Year ending December 31, 2022 | 8,073 | ||
Year ending December 31, 2023 | 8,073 | ||
Year ending December 31, 2024 | 8,073 | ||
Beyond 2024 | 27,909 | ||
Net book value | 68,274 | $ 52,774 | $ 0 |
Other Intangible Assets [Member] | |||
Estimated future amortization expense | |||
Year ending December 31, 2020 | 2,681 | ||
Year ending December 31, 2021 | 2,656 | ||
Year ending December 31, 2022 | 2,633 | ||
Year ending December 31, 2023 | 2,614 | ||
Year ending December 31, 2024 | 2,594 | ||
Beyond 2024 | 6,850 | ||
Net book value | 20,027 | $ 23,062 | $ 15,580 |
Mortgage Servicing Rights | |||
Estimated future amortization expense | |||
Year ending December 31, 2020 | 10,628 | ||
Year ending December 31, 2021 | 11,481 | ||
Year ending December 31, 2022 | 9,576 | ||
Year ending December 31, 2023 | 7,967 | ||
Year ending December 31, 2024 | 6,621 | ||
Beyond 2024 | 21,336 | ||
Net book value | $ 67,607 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 14, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |||
Goodwill | $ 1,176,230 | 1,169,023 | ||||
Huntington National Bank | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 7,286 | |||||
Bank Mutual [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 2,000 | $ 6,000 | 175,000 | |||
Diversified Insurance [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 10,000 | |||||
Anderson Insurance Investment Agency [Domain] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 7,000 |
Premises and Equipment, Summary
Premises and Equipment, Summary Composition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | $ 795,846 | $ 795,846 | ||
Accumulated Depreciation | 360,562 | 360,562 | ||
Net Book Value | 435,284 | 435,284 | $ 363,225 | |
Land | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | 69,649 | 69,649 | ||
Accumulated Depreciation | 0 | 0 | ||
Net Book Value | 69,649 | 69,649 | 67,737 | |
Land improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | 17,868 | 17,868 | ||
Accumulated Depreciation | 8,513 | 8,513 | ||
Net Book Value | 9,355 | $ 9,355 | 7,212 | |
Land improvements | Maximum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 15 years | |||
Land improvements | Minimum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 3 years | |||
Buildings and improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | 394,191 | $ 394,191 | ||
Accumulated Depreciation | 163,833 | 163,833 | ||
Net Book Value | 230,358 | $ 230,358 | 212,536 | |
Buildings and improvements | Maximum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 39 years | |||
Buildings and improvements | Minimum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 5 years | |||
Computers | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | 47,291 | $ 47,291 | ||
Accumulated Depreciation | 34,049 | 34,049 | ||
Net Book Value | $ 13,242 | $ 13,242 | 12,392 | |
Computers | Maximum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 5 years | |||
Computers | Minimum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 3 years | |||
Furniture, fixtures and other equipment | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 12 years | 7 years | ||
Cost | $ 176,023 | $ 176,023 | ||
Accumulated Depreciation | 122,681 | 122,681 | ||
Net Book Value | 53,342 | $ 53,342 | 49,891 | |
Furniture, fixtures and other equipment | Maximum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 15 years | |||
Furniture, fixtures and other equipment | Minimum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 3 years | |||
Operating leases | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | 53,982 | $ 53,982 | ||
Accumulated Depreciation | 8,602 | 8,602 | ||
Net Book Value | 45,381 | 45,381 | 0 | |
Leasehold improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Cost | 36,842 | 36,842 | ||
Accumulated Depreciation | 22,884 | 22,884 | ||
Net Book Value | $ 13,958 | $ 13,958 | $ 13,457 | |
Leasehold improvements | Maximum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 15 years | |||
Leasehold improvements | Minimum | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Estimated Useful Lives | 3 years |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 58,149 | $ 48,253 | $ 46,967 |
Property, Plant and Equipment, Net | 435,284 | 363,225 | |
Land Improvement, Building, Leasehold Improvements, ATM, Computers, Furniture, Fixtures, and Auto [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 34,000 | 34,000 | $ 32,000 |
Operating leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | $ 45,381 | $ 0 |
Leases Lease, Cost and Cash Flo
Leases Lease, Cost and Cash Flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 11,006 |
Finance Lease, Cost | 36 |
Operating Lease, Payments | 11,305 |
Finance Lease, Payments | $ 35 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 45,381 | |
Finance Lease, Right-of-Use Asset | 2,188 | |
Present value of lease payments | 49,292 | |
Finance Lease, Liability | $ 2,209 | $ 0 |
Leases Operating Lease Informat
Leases Operating Lease Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Due | $ 55,580 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 9 months 29 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.32% |
Finance Lease, Liability, Payment, Due | $ 4,827 |
Finance Lease, Weighted Average Remaining Lease Term | 39 years 8 months 1 day |
Finance Lease, Weighted Average Discount Rate, Percent | 3.99% |
Equipment [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Due | $ 46 |
Operating Lease, Weighted Average Remaining Lease Term | 9 months 29 days |
Operating Lease, Weighted Average Discount Rate, Percent | 2.72% |
Retail and Corporate Offices [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Due | $ 48,940 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 5 months 26 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.34% |
Land | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Due | $ 6,594 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 6 months 25 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.21% |
Finance Lease, Liability, Payment, Due | $ 4,827 |
Finance Lease, Weighted Average Remaining Lease Term | 39 years 8 months 1 day |
Finance Lease, Weighted Average Discount Rate, Percent | 3.99% |
Leases Amortization of Operatin
Leases Amortization of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Twelve Months Ending December 31, 2020 | $ 10,662 | |
2021 | 10,136 | |
2022 | 7,854 | |
2023 | 5,625 | |
2024 | 4,988 | |
Beyond 2024 | 16,316 | |
Total lease payments | 55,580 | |
Less: interest | 6,288 | |
Present value of lease payments | 49,292 | |
Finance Leases | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 85 | |
2021 | 85 | |
2022 | 85 | |
2023 | 85 | |
2024 | 88 | |
Beyond 2024 | 4,398 | |
Total lease payments | 4,827 | |
Less: interest | 2,617 | |
Present value of lease payments | 2,209 | $ 0 |
Total Leases [Line Items] | ||
Twelve Months Ending December 31, 2020 | 10,747 | |
2021 | 10,221 | |
2022 | 7,939 | |
2023 | 5,710 | |
2024 | 5,076 | |
Beyond 2024 | 20,714 | |
Total lease payments | 60,407 | |
Less: interest | 8,905 | |
Present value of lease payments | $ 51,501 |
Leases, Minimum Annual Rent Und
Leases, Minimum Annual Rent Under Operating Lease Agreements (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Payments | |
2020 | $ 9,876 |
2021 | 9,976 |
2022 | 7,822 |
2023 | 5,977 |
2024 | 5,315 |
Thereafter | 21,393 |
Total | 60,359 |
Receipts | |
2020 | 3,189 |
2021 | 2,903 |
2022 | 2,127 |
2023 | 1,723 |
2024 | 1,583 |
Thereafter | 8,081 |
Total | $ 19,606 |
Leases (Details Textuals)
Leases (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Liability | $ 16 | ||
Lessee, Finance Lease, Lease Not yet Commenced, Liability | 2 | ||
Operating Leases, Rent Expense, Net | $ 5 | $ 10 | $ 6 |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 43 years | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 6 years |
Deposits, Composition (Details)
Deposits, Composition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits, by Type [Abstract] | ||
Noninterest-bearing demand deposits | $ 5,450,709 | $ 5,698,530 |
Savings | 2,735,036 | 2,012,841 |
Interest-bearing demand | 5,329,717 | 5,336,952 |
Money market | 7,640,798 | 9,033,669 |
Brokered CDs | 5,964 | 192,234 |
Other time | 2,616,839 | 2,623,167 |
Total deposits | $ 23,779,064 | $ 24,897,393 |
Deposits, Time Deposit Maturiti
Deposits, Time Deposit Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2020 | $ 1,947,004 |
2021 | 477,780 |
2022 | 97,141 |
2023 | 55,028 |
2024 | 45,510 |
Thereafter | 340 |
Total | $ 2,622,803 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Time Deposits, $100,000 or More | $ 1,300 | $ 1,400 |
Time Deposits, $250,000 Or More | $ 861 | $ 924 |
Short and Long-term Funding, Co
Short and Long-term Funding, Composition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Federal funds purchased | $ 362,000 | $ 19,710 |
Securities sold under agreements to repurchase | 71,097 | 91,941 |
Federal funds purchased and securities sold under agreements to repurchase | 433,097 | 111,651 |
Commercial paper | 32,016 | 45,423 |
Total short-term funding | 465,113 | 157,074 |
Debt Instrument [Line Items] | ||
Corporation subordinated notes, at par, due 2025 | 250,000 | 250,000 |
Finance Lease, Liability | 2,209 | 0 |
Other Long-term Debt and Capitalized Costs | (2,866) | (4,389) |
Other Long-term Debt | 549,343 | 795,611 |
TotalShortTermLongTermExcludingFHLB | 1,014,456 | 952,685 |
Advances from Federal Home Loan Banks [Abstract] | ||
Short-term FHLB advances | 520,000 | 900,000 |
Long-term FHLB advances | 2,660,967 | 2,674,371 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 3,180,967 | 3,574,371 |
Debt, Long-term and Short-term, Combined Amount [Abstract] | ||
Debt, Long-term and Short-term, Combined Amount, Total | 4,195,422 | 4,527,056 |
Corporation senior notes, at par, due 2019 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | 250,000 |
Bank senior notes, at par, due 2021 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 300,000 | $ 300,000 |
Short and Long-term Funding Rem
Short and Long-term Funding Remaining Contractual Maturity of Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | $ 71,097 | $ 91,941 |
Overnight and Continuous | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 71,097 | 91,941 |
Up to 30 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
30-90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 71,097 | 91,941 |
Agency mortgage-related securities | Overnight and Continuous | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 71,097 | 91,941 |
Agency mortgage-related securities | Up to 30 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | 30-90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | Greater than 90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | $ 0 | $ 0 |
Short and Long-term Funding FHL
Short and Long-term Funding FHLB Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 3,180,967 | $ 3,574,371 |
Weighted Average Coupon Rate | 2.20% | 2.19% |
Maturity or put date 1 year or less | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,055,056 | $ 2,262,584 |
Weighted Average Coupon Rate | 2.19% | 2.06% |
After 1 but within 2 | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 14,099 | $ 1,285,039 |
Weighted Average Coupon Rate | 2.95% | 2.39% |
After 2 but within 3 | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 504,154 | $ 14,393 |
Weighted Average Coupon Rate | 2.12% | 2.98% |
After 3 years | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 607,657 | $ 12,354 |
Weighted Average Coupon Rate | 2.29% | 4.55% |
Short and Long-term Funding Lon
Short and Long-term Funding Long-term Funding, Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 85,095 |
2021 | 312,700 |
2022 | 504,193 |
2023 | 202,572 |
2024 | 250,673 |
Thereafter | 1,855,075 |
Total long-term funding | $ 3,210,310 |
Short and Long-term Funding Sho
Short and Long-term Funding Short and Long-term Funding (Details) - USD ($) $ in Thousands | Aug. 13, 2018 | Nov. 13, 2014 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 3,180,967 | $ 3,574,371 | ||
Collateral for repurchase agreements | 153,000 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 9,600,000 | |||
Two Thousand Eighteen Senior Notes [Member] [Domain] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date Month, Year | August 2018 | |||
New Senior Debt Issued | $ 300,000 | |||
Debt Instrument, Maturity Date Month, Year | August 2021 | |||
Debt Instrument Call Date Earliest Month Year | July 2021 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||
Two Thousand Fourteen Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date Month, Year | November 2014 | |||
New Senior Debt Issued | $ 250,000 | |||
Debt Instrument, Maturity Date Month, Year | November 2019 | |||
Debt Instrument Call Date Earliest Month Year | October 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||
Debt Instrument, Called Date | October 15, 2019 | |||
Finance Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 40 years | |||
Debt Instrument, Maturity Date Month, Year | August 2059 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | |||
FHLB Decrease in Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 393,000 | |||
FLHB Advances, Putable [Domain] | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 1,500,000 | |||
FHLB Long Term Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
FHLB Put Contractual Maturity Weighted Average Life1 | 3 months 7 days | |||
FHLB Weighted Average Life to Contractual Maturity | 5 years 7 months 28 days | |||
Two Thousand Fourteen Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date Month, Year | November 2014 | |||
Junior Subordinated Debentures Issued | $ 250,000 | |||
Debt Instrument, Term | 10 years | |||
Debt Instrument, Maturity Date Month, Year | January 2025 | |||
Debt Instrument Call Date Earliest Month Year | October 2024 | |||
Subordinated Borrowing, Interest Rate | 4.25% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 19, 2018 | Sep. 15, 2016 | Jun. 15, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 25, 2017 | Aug. 28, 2015 |
Stockholders' Equity Note [Abstract] | |||||||
Subsidiary equity balance | $ 3,900,000 | ||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Issued | 264,458 | 264,458 | |||||
Purchase of stock, value | $ 537 | ||||||
Series C Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Issued | 2,600,000 | ||||||
Preferred Stock, Dividend Rate, Percentage | 6.125% | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||||||
Preferred Stock, Participation Rights | Dividends on the Series C Preferred Stock are payable quarterly in arrears only when, as and if declared by the Board of Directors at a rate per annum equal to 6.125%. | ||||||
Preferred Stock, Dividend Payment Terms | Shares of the Series C Preferred Stock have priority over the Corporation’s common stock with regard to the payment of dividends and distributions upon liquidation, dissolution or winding up. As such, the Corporation may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Series C Preferred Stock have been declared for that period, and sufficient funds have been set aside to make payment. | ||||||
Preferred Stock, Redemption Terms | The Series C Preferred Stock may be redeemed by the Corporation at its option (i) either in whole or in part, from time to time, on any dividend payment date on or after the dividend payment date occurring on June 15, 2020, or (ii) in whole but not in part, at any time within 90 days following certain regulatory capital treatment events, in each case at a redemption price of $1,000 per share (equivalent to $25 per depositary share), plus any applicable dividends. | ||||||
Preferred Stock, Voting Rights | Except in certain limited circumstances, the Series C Preferred Stock does not have any voting rights. | ||||||
Stock repurchase program authorized amount | $ 10,000 | ||||||
Remaining authorized repurchase amount | $ 10,000 | ||||||
Series D Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Issued | 4,000,000 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.375% | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||||||
Preferred Stock, Participation Rights | Dividends on the Series D Preferred Stock are payable quarterly in arrears only when, as and if declared by the Board of Directors at a rate per annum equal to 5.375%. | ||||||
Preferred Stock, Dividend Payment Terms | Shares of the Series D Preferred Stock have priority over the Corporation’s common stock with regard to the payment of dividends and distributions upon liquidation, dissolution or winding up. As such, the Corporation may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Series D Preferred Stock have been declared for that period, and sufficient funds have been set aside to make payment. | ||||||
Preferred Stock, Redemption Terms | The Series D Preferred Stock may be redeemed by the Corporation at its option (i) either in whole or in part, from time to time, on any dividend payment date on or after the dividend payment date occurring on September 15, 2021, or (ii) in whole but not in part, at any time within 90 days following certain regulatory capital treatment events, in each case at a redemption price of $1,000 per share (equivalent to $25 per depositary share), plus any applicable dividends. | ||||||
Preferred Stock, Voting Rights | Except in certain limited circumstances, the Series D Preferred Stock does not have any voting rights. | ||||||
Stock repurchase program authorized amount | $ 15,000 | ||||||
Remaining authorized repurchase amount | 14,000 | ||||||
Series E Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Issued | 4,000,000 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.875% | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||||||
Preferred Stock, Participation Rights | Dividends on the Series E Preferred Stock are payable quarterly in arrears only when, as and if declared by the Board of Directors at a rate per annum equal to 5.875%. | ||||||
Preferred Stock, Dividend Payment Terms | Shares of the Series E Preferred Stock have priority over the Corporation’s common stock with regard to the payment of dividends and distributions upon liquidation, dissolution or winding up. As such, the Corporation may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Series E Preferred Stock have been declared for that period, and sufficient funds have been set aside to make payment. | ||||||
Preferred Stock, Redemption Terms | The Series E Preferred Stock may be redeemed by the Corporation at its option (i) either in whole or in part, from time to time, on any dividend payment date on or after the dividend payment date occurring on December 15, 2023, or (ii) in whole but not in part, at any time within 90 days following certain regulatory capital treatment events, in each case at a redemption price of $1,000 per share (equivalent to $25 per depositary share), plus any applicable dividends. | ||||||
Preferred Stock, Voting Rights | Except in certain limited circumstances, the Series E Preferred Stock does not have any voting rights. | ||||||
Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 250,000 | ||||||
Treasury stock shares acquired (in shares) | 8,200,000 | ||||||
Treasury stock carrying basis | $ 177,000 | ||||||
Treasury stock acquired average cost per share (in usd per share) | $ 21.62 | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 300,000 | ||||||
Treasury stock shares acquired (in shares) | 9,500,000 | ||||||
Treasury stock carrying basis | $ 240,000 | ||||||
Treasury stock acquired average cost per share (in usd per share) | $ 25.29 | ||||||
Repurchased amount for minimum tax withholding settlement | $ 9,000 | $ 7,000 | |||||
Repurchased shares for minimum tax withholding settlements (in shares) | 397,969 | 292,070 | |||||
Minimum tax withholding settlement average cost per share (in usd per share) | $ 21.59 | $ 24.47 | |||||
Remaining authorized repurchase amount | $ 184,000 | $ 51,000 |
Stock-Based Compensation Assump
Stock-Based Compensation Assumptions used in Estimating the Fair Value for Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Dividend yield | 3.30% | 2.50% | 2.00% |
Risk-free interest rate | 2.60% | 2.60% | 2.00% |
Weighted average expected volatility | 24.00% | 22.00% | 25.00% |
Weighted average expected life | 5 years 9 months | 5 years 9 months | 5 years 6 months |
Weighted average per share fair value of options | $ 4 | $ 4.47 | $ 5.30 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock Options Shares Outstanding, Beginning balance (in shares) | 5,281 | |
Granted (in shares) | 1,050 | |
Exercised (in shares) | (674) | |
Forfeited or expired (in shares) | (114) | |
Stock Options Shares Outstanding, Ending balance (in shares) | 5,543 | 5,281 |
Options exercisable (in shares) | 3,360 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Stock Options Outstanding, Weighted Average Exercise Price, Beginning balance (in usd per share) | $ 19.09 | |
Granted, Weighted Average Exercise Price (in usd per share) | 22.77 | |
Exercised, Weighted Average Exercise Price (in usd per share) | 15.75 | |
Forfeited or expired, Weighted Average Exercise Price (in usd per share) | 22.42 | |
Stock Options Outstanding, Weighted Average Exercise Price, Ending balance (in usd per share) | 20.13 | $ 19.09 |
Options Exercisable, Weighted Average Exercise Price (in usd per share) | $ 18.22 | |
Stock Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 3 months | 6 years 2 months 4 days |
Options exercisable, Weighted Average Remaining Contractual Term | 4 years 11 months 12 days | |
Stock Options Outstanding, Aggregate Intrinsic Value | $ 16,043 | $ 12,392 |
Options exercisable, Aggregate Intrinsic Value | $ 14,980 |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding Shares, Beginning balance (in shares) | shares | 1,993 |
Granted (in shares) | shares | 1,180 |
Vested (in shares) | shares | (710) |
Forfeited (in shares) | shares | (69) |
Outstanding Shares, Ending balance (in shares) | shares | 2,393 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, Weighted Average Grant Date Fair Value, Beginning balance (in usd per share) | $ / shares | $ 21.92 |
Granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 22.20 |
Vested, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 20.61 |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 23.84 |
Outstanding Weighted Average Grant Date Fair Value, Ending balance (in usd per share) | $ / shares | $ 22.39 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock options exercised | $ 4 | $ 10 | $ 13 |
Total fair value of vested stock options | $ 3 | 4 | 4 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% | ||
Performance-based Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period | 3 years | ||
Term of transfer restrictions | 3 years | ||
Service-based Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period | 4 years | ||
Term of transfer restrictions | 4 years | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized compensation expense for vesting of stock options | $ 4 | 4 | 4 |
String_ShareBasedCompensationArrangementByShareBasedPaymentAwardAcceleratedCompensationCost | $1 million | ||
Unvested share-based payment awards | $ 4 | ||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Not Yet Recognized Year For Recognition | first quarter 2023 | ||
Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized compensation expense for vesting of stock options | $ 21 | $ 13 | $ 18 |
Recognized compensation expense for accelerated vesting of stock options | 4 | ||
Unvested share-based payment awards | $ 20 | ||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Not Yet Recognized Year For Recognition | first quarter 2023 | ||
2017 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares remaining available for grant (in shares) | 7.6 | ||
Expiration term of awards | 10 years | ||
Vesting Period | 4 years |
Retirement Plans, Pension and P
Retirement Plans, Pension and Postretirement Plans Table (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value Of Plan Assets As A Percentage Of Net Benefit Obligation | 170.00% | 167.00% | ||
Pension Plan [Member] | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets at beginning of year | $ 390,564 | $ 331,609 | ||
Actual return on plan assets | 67,377 | (14,609) | ||
Employer contributions | 0 | 4,340 | ||
Gross benefits paid | (15,907) | (10,582) | ||
Bank Mutual plan assets transferred at December 31, 2018 | 79,805 | |||
Fair value of plan assets at end of year(a) | 442,034 | 390,564 | $ 331,609 | |
Change in Benefit Obligation | ||||
Net benefit obligation at beginning of year | 233,658 | 186,423 | ||
Service cost | 7,263 | 7,540 | 6,955 | |
Interest cost | 9,752 | 9,125 | 7,121 | |
Actuarial (gain) loss | 25,810 | (8,000) | ||
Gross benefits paid | (15,907) | (10,582) | ||
Lump sums paid | 0 | 0 | ||
Bank Mutual benefit obligations transferred at December 31, 2018 | 51,549 | |||
Net benefit obligation at end of year(a) | 260,576 | 233,658 | 186,423 | |
Funded (unfunded) status | 181,458 | 156,906 | ||
Noncurrent assets | 181,458 | 156,906 | ||
Current liabilities | 0 | 0 | ||
Noncurrent liabilities | 0 | 0 | ||
Asset (Liability) Recognized on the Consolidated Balance Sheets | 181,458 | 156,906 | ||
Retirement Account Plan Prior to Merger [Member] | ||||
Change in Benefit Obligation | ||||
Interest cost | 6,727 | |||
Bank Mutual Pension | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of Bank Mutual plan assets at February 1, 2018 | $ 59,445 | |||
Actual return on plan assets | (1,665) | |||
Employer contributions | 37,537 | |||
Gross benefits paid | (15,513) | |||
Bank Mutual plan assets transferred at December 31, 2018 | (79,805) | |||
Fair value of plan assets at end of year(a) | 0 | |||
Change in Benefit Obligation | ||||
Net benefit obligation at beginning of year | 0 | |||
Net Bank Mutual benefit obligation at February 1, 2018 | 66,364 | |||
Service cost | 0 | |||
Interest cost | 2,398 | |||
Actuarial (gain) loss | (1,701) | |||
Gross benefits paid | (2,644) | |||
Lump sums paid | (12,868) | |||
Bank Mutual benefit obligations transferred at December 31, 2018 | (51,549) | |||
Net benefit obligation at end of year(a) | 0 | |||
Funded (unfunded) status | 0 | |||
Noncurrent assets | 0 | |||
Current liabilities | 0 | |||
Noncurrent liabilities | 0 | |||
Asset (Liability) Recognized on the Consolidated Balance Sheets | 0 | |||
Postretirement Plan | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of Bank Mutual plan assets at February 1, 2018 | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 270 | 292 | ||
Gross benefits paid | (270) | (292) | ||
Bank Mutual plan assets transferred at December 31, 2018 | 0 | 0 | ||
Fair value of plan assets at end of year(a) | 0 | 0 | 0 | |
Change in Benefit Obligation | ||||
Net benefit obligation at beginning of year | 2,523 | 2,478 | ||
Net Bank Mutual benefit obligation at February 1, 2018 | $ 0 | 576 | ||
Service cost | 0 | 0 | ||
Interest cost | 104 | 108 | 101 | |
Actuarial (gain) loss | 188 | (347) | ||
Gross benefits paid | (270) | (292) | ||
Lump sums paid | 0 | 0 | ||
Bank Mutual benefit obligations transferred at December 31, 2018 | 0 | 0 | ||
Net benefit obligation at end of year(a) | 2,545 | 2,523 | $ 2,478 | |
Funded (unfunded) status | (2,545) | (2,523) | ||
Noncurrent assets | 0 | 0 | ||
Current liabilities | (214) | (219) | ||
Noncurrent liabilities | (2,330) | (2,304) | ||
Asset (Liability) Recognized on the Consolidated Balance Sheets | $ (2,545) | $ (2,523) |
Retirement Plans, Amounts Recog
Retirement Plans, Amounts Recognized in Accumulated Other Comprehensive Income Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ (249) | $ (303) |
Net actuarial loss | 37,075 | 50,238 |
Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss | 36,827 | 49,935 |
Postretirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | (533) | (588) |
Net actuarial loss | 126 | (17) |
Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss | $ (406) | $ (605) |
Retirement Plans, Other Changes
Retirement Plans, Other Changes in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service cost | $ (148) | $ (148) | $ (148) |
Amortization of actuarial loss (gain) | 16,296 | (28,612) | 14,273 |
Income tax (expense) benefit | (4,465) | 6,767 | (6,112) |
Other comprehensive income (loss) on pension and postretirement obligations | 12,158 | (25,025) | $ 10,295 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | 17,235 | (28,959) | |
Amortization of prior service cost | (73) | (73) | |
Amortization of actuarial loss (gain) | 480 | 2,195 | |
ASU Adjustment RAP (2018-02) | 0 | (5,235) | |
Income tax (expense) benefit | (4,532) | 6,838 | |
Other comprehensive income (loss) on pension and postretirement obligations | 13,109 | (25,234) | |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | (188) | 347 | |
Amortization of prior service cost | (75) | (75) | |
Amortization of actuarial loss (gain) | (4) | 8 | |
ASU Adjustment RAP (2018-02) | 0 | 0 | |
Income tax (expense) benefit | 67 | (71) | |
Other comprehensive income (loss) on pension and postretirement obligations | $ (200) | $ 209 |
Retirement Plans, Components of
Retirement Plans, Components of Net Pension Cost for the Retirement Account Plan Tables (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net period benefit cost for the pension and postretirement plans | |||
Service cost | $ 7,263 | $ 7,540 | $ 6,955 |
Interest cost | 9,752 | 9,125 | 7,121 |
Expected return on plan assets | (24,332) | (23,195) | (19,646) |
Amortization of prior service cost | (73) | (73) | (73) |
Amortization of actuarial loss (gain) | 480 | 2,195 | 2,278 |
Recognized settlement loss (gain) | 0 | 809 | 0 |
Total net periodic pension cost | $ (6,910) | $ (3,600) | $ (3,365) |
Retirement Plans Retirement Pla
Retirement Plans Retirement Plans, Components of Net Pension Cost for the Post Retirement Plan Table (Details) - Postretirement Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Interest Cost | $ 104 | $ 108 | $ 101 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (75) | (75) | (75) |
Defined Benefit Plan, Amortization of Gain (Loss) | (4) | 8 | 4 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 25 | $ 41 | $ 30 |
Retirement Plans, Weighted Aver
Retirement Plans, Weighted Average Assumptions used to Determine Benefit and Net Periodic Benefit Costs (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.20% | 4.30% |
Rate of increase in compensation levels | 2.00% | 3.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate(a) | 4.30% | 3.77% |
Rate of increase in compensation levels | 3.00% | 3.00% |
Expected long-term rate of return on plan assets(b) | 6.00% | 5.93% |
Postretirement Plan | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.20% | 4.30% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate(a) | 4.30% | 3.77% |
Retirement Account Plan Prior to Merger [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate(a) | 3.70% | |
Expected long-term rate of return on plan assets(b) | 6.00% | |
Bank Mutual Pension | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate(a) | 4.00% | |
Expected long-term rate of return on plan assets(b) | 5.50% |
Retirement Plans, Asset Allocat
Retirement Plans, Asset Allocation for Pension Plan Table (Details) - Pension Plan [Member] | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 51.00% | 49.00% |
Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 33.00% | 34.00% |
Group annuity contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 11.00% | 12.00% |
Alternative securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 3.00% | 3.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 2.00% | 2.00% |
Retirement Plans, Fair Value of
Retirement Plans, Fair Value of Pension Plan Investments Table (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan Investments | |||
RAP Investment Amount | $ 442,034 | $ 390,564 | $ 331,609 |
Fair Value, Inputs, Level 1 | |||
Pension Plan Investments | |||
RAP Investment Amount | 391,979 | 343,299 | |
Fair Value, Inputs, Level 2 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Fair Value, Inputs, Level 3 | |||
Pension Plan Investments | |||
RAP Investment Amount | 50,055 | 47,265 | |
Money market account | |||
Pension Plan Investments | |||
RAP Investment Amount | 8,903 | 7,159 | |
Money market account | Fair Value, Inputs, Level 1 | |||
Pension Plan Investments | |||
RAP Investment Amount | 8,903 | 7,159 | |
Money market account | Fair Value, Inputs, Level 2 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Money market account | Fair Value, Inputs, Level 3 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Common /collective trust funds | |||
Pension Plan Investments | |||
RAP Investment Amount | 155,964 | 138,020 | |
Common /collective trust funds | Fair Value, Inputs, Level 1 | |||
Pension Plan Investments | |||
RAP Investment Amount | 155,964 | 138,020 | |
Common /collective trust funds | Fair Value, Inputs, Level 2 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Common /collective trust funds | Fair Value, Inputs, Level 3 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Mutual funds | |||
Pension Plan Investments | |||
RAP Investment Amount | 227,112 | 198,120 | |
Mutual funds | Fair Value, Inputs, Level 1 | |||
Pension Plan Investments | |||
RAP Investment Amount | 227,112 | 198,120 | |
Mutual funds | Fair Value, Inputs, Level 2 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Mutual funds | Fair Value, Inputs, Level 3 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Group annuity contracts | |||
Pension Plan Investments | |||
RAP Investment Amount | 50,055 | 47,265 | |
Group annuity contracts | Fair Value, Inputs, Level 1 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Group annuity contracts | Fair Value, Inputs, Level 2 | |||
Pension Plan Investments | |||
RAP Investment Amount | 0 | 0 | |
Group annuity contracts | Fair Value, Inputs, Level 3 | |||
Pension Plan Investments | |||
RAP Investment Amount | $ 50,055 | $ 47,265 |
Retirement Plans Retirement P_2
Retirement Plans Retirement Plans, Fair Value Reconciliation of Level 3 Retirement Account Plan Investments (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of group annuity contract at end of period | $ 442,034 | $ 390,564 | $ 331,609 |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of group annuity contract at end of period | 50,055 | 47,265 | |
Group annuity contracts | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of group annuity contract at end of period | 50,055 | 47,265 | |
Group annuity contracts | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of group annuity contract at beginning of period | 47,265 | $ 49,191 | |
Return on plan assets | 5,495 | 565 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Settlement | (2,704) | (2,491) | |
Fair value of group annuity contract at end of period | $ 50,055 | $ 47,265 |
Retirement Plans, Estimated Fut
Retirement Plans, Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 19,659 |
2021 | 19,755 |
2022 | 20,729 |
2023 | 20,392 |
2024 | 20,710 |
2025-2029 | 91,264 |
Postretirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 218 |
2021 | 213 |
2022 | 208 |
2023 | 202 |
2024 | 196 |
2025-2029 | $ 867 |
Retirement Plans, Effect of 1%
Retirement Plans, Effect of 1% Change in the Assumed Health Care Cost Trend Rate Intro (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in assumed health care cost | ||
Effect on total of service and interest cost | $ 7 | $ 7 |
Effect on total of service and interest cost | (6) | (6) |
Effect on postretirement benefit obligation (increase) | 170 | 164 |
Effect on postretirement benefit obligation (decrease) | $ (148) | $ (143) |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) | Jun. 14, 2019 | Feb. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan [Member] | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Description | The Corporation has a noncontributory defined benefit retirement plan, the RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. | ||||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 3,000,000 | ||||
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ 75,000 | ||||
Actual return on plan assets percentage | 18.29% | (3.69%) | |||
Employer contributions | $ 0 | $ 4,340,000 | |||
Postretirement Plan | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Description | The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans. | ||||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 0 | ||||
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 75,000 | ||||
Employer contributions | $ 270,000 | 292,000 | |||
Postretirement Plan | Post-65 Health Care Trend [Member] | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan Health Care Cost Rate Change | 2.00% | ||||
Health care trend rate assumption | 5.75% | ||||
Defined Benefit Plan, Health Care Cost Trend, Reduction in Trend Rate Minimum | 0.25% | ||||
Postretirement Plan | Pre-65 Health Care Trend Rate [Member] | |||||
Retirements Plans [Line Items] | |||||
Ultimate future rate | 5.00% | ||||
Bank Mutual Pension | |||||
Retirements Plans [Line Items] | |||||
Employer contributions | 37,537,000 | ||||
401(k) plan | |||||
Retirements Plans [Line Items] | |||||
Total expense related to 401(k) | $ 16,000,000 | $ 16,000,000 | $ 14,000,000 | ||
Minimum [Member] | Pension Plan [Member] | Equity securities | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | ||||
Minimum [Member] | Pension Plan [Member] | Fixed-income securities | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% | ||||
Minimum [Member] | Pension Plan [Member] | Other Cash Equivalents | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | ||||
Minimum [Member] | Pension Plan [Member] | Alternative securities | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | ||||
Maximum [Member] | Pension Plan [Member] | Equity securities | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70.00% | ||||
Maximum [Member] | Pension Plan [Member] | Fixed-income securities | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | ||||
Maximum [Member] | Pension Plan [Member] | Other Cash Equivalents | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% | ||||
Maximum [Member] | Pension Plan [Member] | Alternative securities | |||||
Retirements Plans [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | ||||
Bank Mutual [Member] | |||||
Retirements Plans [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Feb. 1, 2018 | ||||
Huntington National Bank | |||||
Retirements Plans [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Jun. 14, 2019 |
Income Taxes, Current and Defer
Income Taxes, Current and Deferred Amounts of Income Tax Expense Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 50,560 | $ 20,246 | $ 76,525 |
State | 15,327 | 12,593 | 11,576 |
Total current | 65,887 | 32,839 | 88,101 |
Deferred: | |||
Federal | 14,094 | 34,941 | 19,755 |
State | (261) | 12,006 | 1,647 |
Total deferred | 13,833 | 46,947 | 21,402 |
Total income tax expense | $ 79,720 | $ 79,786 | $ 109,503 |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Liabilities Resulted in Deferred Taxes Table (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Gross deferred tax assets: | |||
Allowance for loan losses | $ 48,790,000 | $ 61,143,000 | |
Allowance for other losses | 7,236,000 | 8,304,000 | |
Accrued liabilities | 4,005,000 | 3,736,000 | |
Deferred compensation | 28,018,000 | 24,754,000 | |
Benefit of tax loss and credit carryforwards | 13,444,000 | 10,126,000 | |
Nonaccrual interest | 1,299,000 | 1,666,000 | |
Net unrealized losses on available-for-sale securities | 0 | 25,731,000 | |
Net unrealized losses on pension and postretirement benefits | 12,174,000 | 16,640,000 | |
Other | 3,495,000 | 1,916,000 | |
Total deferred tax assets | 118,461,000 | 154,015,000 | |
Valuation allowance for deferred tax assets | (251,000) | (251,000) | $ (269,000) |
Total deferred tax assets after valuation allowance | 118,211,000 | 153,764,000 | |
Gross deferred tax liabilities | |||
Prepaid expenses | 62,227,000 | 61,250,000 | |
Goodwill | 21,099,000 | 20,178,000 | |
Mortgage banking activities | 17,418,000 | 17,428,000 | |
Deferred loan fee income | 12,190,000 | 11,892,000 | |
State deferred taxes | 722,000 | 518,000 | |
Lease financing | 199,000 | 410,000 | |
Bank premises and equipment | 18,348,000 | 18,655,000 | |
Purchase accounting | 13,738,000 | 12,414,000 | |
Deferred gains from equity securities and other investments | 4,810,000 | 0 | |
Net unrealized gains on available-for-sale securities | 1,139,000 | 0 | |
Other | 1,156,000 | 684,000 | |
Total deferred tax liabilities | 153,045,000 | 143,429,000 | |
Deferred Tax Liabilities, Net | $ (34,836,000) | ||
Net deferred tax assets (liabilities) | $ 10,335,000 |
Income Taxes, Summary of Valuat
Income Taxes, Summary of Valuation Allowance (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Valuation allowance for deferred tax assets, beginning of year | $ (251,000) | $ (269,000) |
(Increase) decrease in current year | 0 | 18,000 |
Valuation allowance for deferred tax assets, end of year | $ (251,000) | $ (251,000) |
Income Taxes, Major Reasons for
Income Taxes, Major Reasons for the Difference in Effective Income Tax Rate from the Federal Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation | |||
Federal income tax rate at statutory rate | 21.00% | 21.00% | 35.00% |
Increases (decreases) resulting from: | |||
Tax-exempt interest and dividends | (3.30%) | (2.60%) | (4.10%) |
State income taxes (net of federal benefit) | 3.50% | 3.70% | 2.90% |
Bank owned life insurance | (0.80%) | (0.70%) | (1.70%) |
Tax effect of tax credits and benefits, net of related expenses | (0.90%) | (0.70%) | (0.70%) |
Tax reserve adjustments / settlements | 0.20% | 1.50% | (1.20%) |
Net tax benefit from stock-based compensation | (0.20%) | (0.50%) | (1.30%) |
Tax Act impact on deferred remeasurement | 0.00% | 0.00% | 3.50% |
Tax planning in response to the Tax Act | 0.00% | (3.60%) | 0.00% |
FDIC premium | 0.50% | 0.90% | 0.00% |
Other | (0.40%) | 0.30% | (0.10%) |
Effective income tax rate | 19.60% | 19.30% | 32.30% |
Income Taxes, Reconciliation of
Income Taxes, Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits Table (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 2 | $ 4 |
Subtractions for tax positions related to prior years | 0 | 0 |
Subtractions for settlements with tax authorities | 0 | (3) |
Additions for tax positions related to current year | 1 | 1 |
Balance at end of year | $ 3 | $ 2 |
Income Taxes, Textuals (Details
Income Taxes, Textuals (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for deferred tax assets | $ (251,000) | $ (251,000) | $ (269,000) |
Tax Credit Carryforward, Amount | $ 5,000,000 | ||
Tax Credit Carryforward, Expiration Being Date | begin expiring in 2034 | ||
Bad debt from acquired savings banks | $ 100,000,000 | ||
Deferred tax on bad debt from acquired savings banks | 25,000,000 | ||
Unrecognized tax benefit impact on effective tax rate | 2,000,000 | 1,000,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 1,000,000 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 106,000,000 | ||
Operating tax loss carryforwards from acquisitions | $ 49,000,000 | ||
Operating Loss Carryforwards, Expiration Begin Date | begin expiring in 2031 | ||
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 3,000,000 |
Derivative and Hedging Activi_3
Derivative and Hedging Activities, Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Asset | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivatives (trading and other assets), fair value | $ 104,305 | $ 91,260 |
Derivative Asset, Fair Value, Gross Liability | 10,410 | 5,322 |
Cash Collateral Received | 1,408 | 27,593 |
Net Amounts Presented on the Consolidated Balance Sheets | 92,487 | 58,345 |
Liability | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivatives (trading and other liabilities), fair value | 37,455 | 89,889 |
Derivative Liability, Fair Value, Gross Asset | 10,410 | 5,322 |
Cash Collateral Pledged | 11,365 | 63 |
Net Amounts Presented on the Consolidated Balance Sheets | 15,680 | 84,504 |
Designated as hedging instruments | Asset | Interest rate-related instruments | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Asset, Notional Amount | 0 | 0 |
Derivatives (trading and other assets), fair value | 0 | 0 |
Designated as hedging instruments | Liability | Interest rate-related instruments | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Liability, Notional Amount | 0 | 500,000 |
Derivatives (trading and other liabilities), fair value | 0 | 40 |
Not designated as hedging instruments | Asset | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivatives (trading and other assets), fair value | 104,305 | 91,260 |
Not designated as hedging instruments | Asset | Interest Rate Related Instruments Customer and Mirror | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Asset, Notional Amount | 3,029,877 | 2,707,204 |
Derivatives (trading and other assets), fair value | 77,024 | 52,796 |
Not designated as hedging instruments | Asset | Foreign currency exchange forwards | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Asset, Notional Amount | 272,636 | 117,879 |
Derivatives (trading and other assets), fair value | 4,226 | 721 |
Not designated as hedging instruments | Asset | Commodity contracts | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Asset, Notional Amount | 255,089 | 331,727 |
Derivatives (trading and other assets), fair value | 20,528 | 35,426 |
Not designated as hedging instruments | Asset | Mortgage banking(a) | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Asset, Notional Amount | 255,291 | 191,222 |
Derivatives (trading and other assets), fair value | 2,527 | 2,208 |
Not designated as hedging instruments | Asset | Time deposits | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Asset, Notional Amount | 0 | 11,185 |
Derivatives (trading and other assets), fair value | 0 | 109 |
Not designated as hedging instruments | Liability | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivatives (trading and other liabilities), fair value | 37,455 | 89,849 |
Not designated as hedging instruments | Liability | Interest Rate Related Instruments Customer and Mirror | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Liability, Notional Amount | 3,029,877 | 2,707,204 |
Derivatives (trading and other liabilities), fair value | 13,073 | 52,653 |
Not designated as hedging instruments | Liability | Foreign currency exchange forwards | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Liability, Notional Amount | 264,653 | 69,153 |
Derivatives (trading and other liabilities), fair value | 4,048 | 675 |
Not designated as hedging instruments | Liability | Commodity contracts | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Liability, Notional Amount | 255,165 | 315,861 |
Derivatives (trading and other liabilities), fair value | 19,624 | 34,340 |
Not designated as hedging instruments | Liability | Mortgage banking(a) | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Liability, Notional Amount | 263,000 | 139,984 |
Derivatives (trading and other liabilities), fair value | 710 | 2,072 |
Not designated as hedging instruments | Liability | Time deposits | ||
Derivative Instruments Designated/Not Designated as Hedging Instruments | ||
Derivative Liability, Notional Amount | 0 | 11,185 |
Derivatives (trading and other liabilities), fair value | $ 0 | $ 109 |
Derivative and Hedging Activi_4
Derivative and Hedging Activities Cumulative Basis Adjustment for Fair Value Hedges (Details) - Designated as hedging instruments $ in Thousands | Dec. 31, 2019USD ($) |
Balance Sheet Recording of Fair Value Hedge [Line Items] | |
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 5,000 |
Underlying Hedged Asset, Amortized Cost Basis | 893,000 |
Derivative Liability Notional Amount, Terminated | 500,000 |
Carrying Amount of the Hedged Assets/(Liabilities) | |
Balance Sheet Recording of Fair Value Hedge [Line Items] | |
Net Amounts Presented on the Consolidated Balance Sheets | 505,371 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)(b) | |
Balance Sheet Recording of Fair Value Hedge [Line Items] | |
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 5,371 |
Derivative and Hedging Activi_5
Derivative and Hedging Activities Income Impact of Fair Value and Cash Flow Hedge (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ (448) | $ (1,325) |
Interest Income [Member] | Designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 5,871 | (502) |
Interest Income [Member] | Derivatives designated as hedging instruments(a) | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Fair Value Hedge, Included in Effectiveness, Gain (Loss) | (6,319) | (823) |
Other Operating Income (Expense) [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 |
Other Operating Income (Expense) [Member] | Designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 |
Other Operating Income (Expense) [Member] | Derivatives designated as hedging instruments(a) | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Fair Value Hedge, Included in Effectiveness, Gain (Loss) | $ 0 | $ 0 |
Derivative and Hedging Activi_6
Derivative and Hedging Activities, Income Statement Category of the Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Capital market fees, net | Interest Rate Related Instruments Customer and Mirror | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | $ (1,393) | $ (316) |
Capital market fees, net | Foreign currency exchange forwards | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | 132 | (110) |
Capital market fees, net | Commodity contracts | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | (1,763) | (314) |
Mortgage banking, net | Mortgage banking(a) | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | 319 | 670 |
Mortgage banking, net | Forward commitments (mortgage) | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | $ 1,362 | $ (1,759) |
Derivative and Hedging Activi_7
Derivative and Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Investment securities pledged as collateral | $ 57 | $ 36 |
Derivative collateral right to reclaim cash | $ 14 | $ 1 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - Interest Rate Contract - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts Recognized | $ 11,864 | $ 65,596 |
Derivative Liabilities Offset | (10,410) | (5,322) |
Cash Collateral Received | (1,408) | (27,593) |
Net Amounts Presented on the Consolidated Balance Sheets | 45 | 32,681 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | 0 | (31,837) |
Net Amount | 45 | 843 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts Recognized | 22,189 | 22,951 |
Derivative Assets Offset | (10,410) | (5,322) |
Cash Collateral Pledged | (11,365) | (63) |
Net Amounts Presented on the Consolidated Balance Sheets | 413 | 17,567 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | 0 | (17,551) |
Net Amount | $ 413 | $ 16 |
Commitments, Off-Balance Shee_3
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities, Summary of Lending Related and Other Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of lending-related and other commitments [Line Items] | ||
Lending related commitments, fair value | $ 0 | $ 0 |
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b) | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 9,024,412 | 8,720,293 |
Commercial letters of credit(a) | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 7,081 | 7,599 |
Standby letters of credit(c) | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 277,969 | 255,904 |
Standby letters of credit, fair value | $ 3,000 | $ 2,000 |
Commitments, Off-Balance Shee_4
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Allowances and Reserve Balance | $ 22,000 | $ 24,000 | |
Expense Related to Qualified Affordable Housing Projects | 19,000 | 17,000 | $ 8,000 |
Remaining Investment in Qualified Affordable Housing Projects | 234,000 | 132,000 | |
Unfunded Equity Contributions Obligation Amount | 123,000 | 51,000 | |
Loans repurchased under make whole requests | $ 2,000 | $ 2,000 | |
Loans Sold To Outside Investors Loss Reimbursement Settlement Paid | negligible | negligible | |
Loans sold to outside investors original amount | $ 12,500,000 | ||
Loans sold to outside investors remaining outstanding amount | 7,400,000 | ||
Residential mortgage loans sold with recourse risk | 39,000 | $ 47,000 | |
Residential mortgage loans sold with credit recourse risk | 45,000 | 57,000 | |
Community Reinvestment, Obtaining Tax Credits, and Other Tax Benefits [Member] | |||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Carrying value of investments | 248,000 | 136,000 | |
Tax Credit and Other Investments | |||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Carrying value of investments | 26,000 | 25,000 | |
Mortgage Repurchase Reserve | |||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Allowances and Reserve Balance | $ 795 | $ 752 |
Parent Company Only Financial_3
Parent Company Only Financial Information, Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||||
Cash and due from banks | $ 373,380 | $ 507,187 | |||
Interest-bearing deposits in other financial institutions | 207,624 | 221,226 | |||
Other assets(a) | [1] | 597,242 | 516,538 | ||
Total assets | 32,386,478 | 33,615,122 | |||
Liabilities and stockholders' equity | |||||
Commercial paper | 32,016 | 45,423 | |||
Subordinated notes, at par | 250,000 | 250,000 | |||
Long-term funding capitalized costs | 2,866 | 4,389 | |||
Total long-term funding | 3,210,310 | ||||
Other Liabilities | 489,868 | 409,787 | |||
Total liabilities | 28,464,355 | 29,834,235 | |||
Preferred equity | 256,716 | 256,716 | |||
Common equity | 1,752 | 1,752 | |||
Total stockholders’ equity | 3,922,124 | 3,780,888 | $ 3,237,443 | $ 3,091,312 | |
Total liabilities and stockholders’ equity | 32,386,478 | 33,615,122 | |||
Parent Company Only | |||||
Assets | |||||
Cash and due from banks | 17,427 | 16,245 | |||
Interest-bearing deposits in other financial institutions | 27,186 | 38,374 | |||
Notes and interest receivable from subsidiaries | 201,551 | 453,615 | |||
Investments in and receivable due from subsidiaries | 3,925,596 | 3,787,574 | |||
Other assets(a) | 46,234 | 47,448 | |||
Total assets | 4,217,994 | 4,343,256 | |||
Liabilities and stockholders' equity | |||||
Commercial paper | 32,016 | 45,423 | |||
Senior notes, at par | 0 | 250,000 | |||
Subordinated notes, at par | 250,000 | 250,000 | |||
Long-term funding capitalized costs | (1,428) | (2,043) | |||
Total long-term funding | 248,572 | 497,957 | |||
Other Liabilities | 15,282 | 18,988 | |||
Total liabilities | 295,870 | 562,368 | |||
Preferred equity | 256,716 | 256,716 | |||
Common equity | 3,665,407 | 3,524,171 | |||
Total stockholders’ equity | 3,922,124 | 3,780,888 | |||
Total liabilities and stockholders’ equity | $ 4,217,994 | $ 4,343,256 | |||
[1] | (a) During the third quarter of 2019, the Corporation made a change in accounting policy to offset derivative assets and liabilities and cash collateral with the same counterparty where it has a legally enforceable master netting agreement in place. The change had no impact on either earnings or equity. The Corporation believes that this change is a preferable method of accounting as it provides a better reflection of the assets and liabilities on the face of the consolidated balance sheets. Adoption of this change was voluntary and has been adopted retrospectively with all prior periods presented herein revised. |
Parent Company Only Financial_4
Parent Company Only Financial Information, Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||
Interest income on notes receivable from subsidiaries | $ 998,099 | $ 976,990 | $ 749,000 |
Total income | 1,216,498 | 1,235,148 | 1,073,900 |
Expense | |||
Income before income tax expense | 406,509 | 413,349 | 338,767 |
Income tax expense | 79,720 | 79,786 | 109,503 |
Net income | 326,790 | 333,562 | 229,264 |
Preferred stock dividends | 15,202 | 10,784 | 9,347 |
Net income available to common equity | 311,587 | 322,779 | 219,917 |
Parent Company Only | |||
Income | |||
Income from subsidiaries | 341,789 | 354,637 | 253,485 |
Interest income on notes receivable from subsidiaries | 13,983 | 12,199 | 4,175 |
Other income | 761 | 994 | 1,763 |
Total income | 356,532 | 367,830 | 259,423 |
Expense | |||
Interest expense on short and long-term funding | 16,802 | 18,355 | 18,464 |
Other expense | 6,583 | 11,736 | 6,927 |
Total expense | 23,384 | 30,091 | 25,391 |
Income before income tax expense | 333,148 | 337,739 | 234,032 |
Income tax expense | 6,359 | 4,176 | 4,768 |
Net income | 326,790 | 333,562 | 229,264 |
Preferred stock dividends | 15,202 | 10,784 | 9,347 |
Net income available to common equity | $ 311,587 | $ 322,779 | $ 219,917 |
Parent Company Only Financial_5
Parent Company Only Financial Information, Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 326,790 | $ 333,562 | $ 229,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Losses (gains) on sales of investment securities, net | (5,957) | 1,985 | (434) |
Net change in other assets and other liabilities | (11,930) | (33,363) | (17,941) |
Net cash provided by operating activities | 574,260 | 496,567 | 458,368 |
Cash Flows from Investing Activities | |||
Proceeds from sales of investment securities | 1,367,476 | 601,130 | 18,467 |
Net cash provided by (used in) investing activities | 1,617,446 | (380,872) | (1,396,858) |
Cash Flows from Financing Activities | |||
Net increase (decrease) in commercial paper | 308,039 | (581,371) | (217,753) |
Redemption of Corporation's senior notes | 250,000 | 0 | 0 |
Proceeds from issuance of common stock for stock-based compensation plans | 11,216 | 18,408 | 27,619 |
Proceeds from issuance of preferred stock | 0 | 97,315 | 0 |
Purchase of preferred shares | 0 | (537) | 0 |
Common stock warrants exercised | (1) | ||
Purchase of common stock returned to authorized but unissued | 0 | (33,075) | (37,031) |
Issuance of treasury stock for acquisition | 488,408 | 7,151 | |
Purchase of treasury stock | (186,076) | (213,598) | (9,290) |
Cash dividends on common stock | (111,804) | (105,519) | (76,417) |
Cash dividends on preferred stock | (15,202) | (10,784) | (9,347) |
Net cash used in financing activities | (2,479,660) | 44,983 | 1,012,275 |
Parent Company Only | |||
Cash Flows from Operating Activities | |||
Net income | 326,790 | 333,562 | 229,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Increase) decrease in equity in undistributed net income (loss) of subsidiaries | (21,789) | (18,636) | (40,485) |
Asset (gains) losses, net | 0 | 0 | (88) |
Net change in other assets and other liabilities | 265 | (92,366) | (9,589) |
Net cash provided by operating activities | 305,266 | 222,562 | 179,102 |
Cash Flows from Investing Activities | |||
Proceeds from sales of investment securities | 0 | 827 | 2,618 |
Net (increase) decrease in notes receivable from subsidiaries | 250,000 | (139,317) | (300,000) |
Net (increase) decrease in loans | 0 | 2,210 | 1,058 |
Net cash provided by (used in) investing activities | 250,000 | (136,280) | (296,324) |
Cash Flows from Financing Activities | |||
Net increase (decrease) in commercial paper | (13,406) | (22,044) | (34,221) |
Redemption of Corporation's senior notes | (250,000) | 0 | 0 |
Proceeds from issuance of common stock for stock-based compensation plans | 11,216 | 18,408 | 27,619 |
Proceeds from issuance of preferred stock | 0 | 97,315 | 0 |
Purchase of preferred shares | 0 | (537) | 0 |
Common stock warrants exercised | 0 | (1) | 0 |
Purchase of common stock returned to authorized but unissued | 0 | (33,075) | (37,031) |
Issuance of treasury stock for acquisition | 0 | 91,296 | 0 |
Purchase of treasury stock | (186,076) | (213,598) | (9,290) |
Cash dividends on common stock | (111,804) | (105,519) | (76,417) |
Cash dividends on preferred stock | (15,202) | (10,784) | (9,347) |
Net cash used in financing activities | (565,272) | (178,540) | (138,687) |
Net increase (decrease) in cash and cash equivalents | (10,006) | (92,258) | (255,909) |
Cash and cash equivalents at beginning of year | 54,619 | 146,877 | 402,786 |
Cash and cash equivalents at end of year | $ 44,613 | $ 54,619 | $ 146,877 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | $ 3,262,586 | $ 3,946,941 |
Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 999 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,262,586 | 3,945,943 |
Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 2,527 | 2,208 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net Amounts Presented on the Consolidated Balance Sheets | 710 | 2,072 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | U.S. Treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 999 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | Other debt securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,646 | 1,568 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 999 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Private-label | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 1,003 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | FFELP asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 263,693 | 297,360 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Other debt securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,000 | 3,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,262,586 | 3,945,943 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 136,280 | 64,321 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Interest rate-related instruments(a) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 77,024 | 52,796 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net Amounts Presented on the Consolidated Balance Sheets | 13,073 | 52,653 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Foreign currency exchange forwards(a) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 4,226 | 721 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net Amounts Presented on the Consolidated Balance Sheets | 4,048 | 675 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Commodity contracts(a) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 20,528 | 35,426 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net Amounts Presented on the Consolidated Balance Sheets | 19,624 | 34,340 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Purchased options (time deposit) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 0 | 109 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net Amounts Presented on the Consolidated Balance Sheets | 0 | 109 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 | Interest rate lock commitments to originate residential mortgage loans held for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Assets | 2,527 | 2,208 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 | Forward commitments to sell residential mortgage loans | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Net Amounts Presented on the Consolidated Balance Sheets | 710 | 2,072 |
Designated as hedging instruments | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest Rate Fair Value Hedge Liability at Fair Value | 0 | 40 |
FNMA / FHLMC | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | FNMA / FHLMC | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 132,660 | 295,252 |
FNMA / FHLMC | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Commercial mortgage-related securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 21,728 | 0 |
GNMA | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 985,139 | 2,128,531 |
GNMA | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Commercial mortgage-related securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,310,207 | 1,220,797 |
Obligations of state and political subdivisions (municipal securities)(a) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 546,160 | |
Obligations of state and political subdivisions (municipal securities)(a) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | $ 546,160 | $ 0 |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - Derivative Financial Instruments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | $ 140 | $ 1,225 |
Mortgage derivative gain (loss) | 1,681 | (1,085) |
Ending Balance | $ 1,817 | $ 140 |
Fair Value Measurements Equity
Fair Value Measurements Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Equity Securities Without Readily Determinable Fair Value Amount [Roll Forward] | ||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 0 | |||
Write-up of equity securities without readily determinable fair values | 13,444 | $ 0 | $ 0 | |
Equity Securities without Readily Determinable Fair Value, Amount | 0 | 0 | $ 13,000 | |
Fair Value, Inputs, Level 3 | ||||
Equity Securities Without Readily Determinable Fair Value Amount [Roll Forward] | ||||
Equity Securities without Readily Determinable Fair Value, Amount | 0 | |||
Write-up of equity securities without readily determinable fair values | 13,444 | |||
Equity Securities without Readily Determinable Fair Value, Amount | $ 0 | $ 0 | 13,444 | |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Cumulative Amount | 13,444 | |||
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Cumulative Amount | $ 0 |
Fair Value Measurements, Asse_3
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Mortgage servicing rights | $ 67,306 | $ 68,193 | $ 58,384 |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 63 | (545) | $ 175 |
Equity Securities without Readily Determinable Fair Value, Amount | 13,000 | 0 | |
Equity securities | 15,090 | 1,568 | |
Fair Value, Inputs, Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Equity Securities without Readily Determinable Fair Value, Amount | 13,444 | 0 | |
Equity securities | 13,444 | 0 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
OREO(c) | 3,565 | 2,200 | |
Other noninterest expense | (1,860) | (1,545) | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Impaired loans | 45,792 | 26,191 | |
Provision for Credit Losses, Impaired Loans | (66,172) | (14,521) | |
Mortgage servicing rights | 72,532 | 81,012 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | (63) | $ 545 | |
Equity Securities without Readily Determinable Fair Value, Amount | 13,444 | ||
Equity securities | $ 13,444 |
Fair Value Measurements, Schedu
Fair Value Measurements, Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities (Details) - Fair Value, Inputs, Level 3 | 12 Months Ended |
Dec. 31, 2019 | |
Discounted Cash Flow [Member] | Servicing Contracts [Member] | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 9.00% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 12.00% |
Appraisals/Discounted Cash Flow [Member] | Impaired Finance Receivable [Member] | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 44.00% |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and due from banks | $ 373,380 | $ 507,187 |
Interest-bearing deposits in other financial institutions | 207,624 | 221,226 |
Federal funds sold and securities purchased under agreements to resell | 7,740 | 148,285 |
Investment securities held to maturity | 2,205,083 | 2,740,511 |
Investment securities held to maturity, fair value | 2,276,465 | 2,710,271 |
Investment securities available for sale | 3,262,586 | 3,946,941 |
Equity Securities with Readily Determined Fair Value | 2,000 | 2,000 |
Equity Securities without Readily Determinable Fair Value, Amount | 13,000 | 0 |
Equity securities | 15,090 | 1,568 |
FHLB and Federal Reserve Bank stocks | 227,347 | 250,534 |
Commercial loans held for sale | 15,000 | 14,943 |
Loans, net | 22,620,068 | 22,702,406 |
Bank and Corporate Owned Life Insurance | 671,948 | 663,203 |
Financial liabilities | ||
Short-term funding | 465,113 | 157,074 |
Other long-term funding | 3,210,310 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 3,180,967 | 3,574,371 |
Commitment on standby letters of credit | 278,000 | 256,000 |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and due from banks | 373,380 | 507,187 |
Cash and due from banks, Fair Value | 373,380 | 507,187 |
Interest-bearing deposits in other financial institutions | 207,624 | 221,226 |
Interest-bearing deposits in other financial institutions, fair value | 207,624 | 221,226 |
Federal funds sold and securities purchased under agreements to resell | 7,740 | 148,285 |
Federal funds sold and securities purchased under agreements to resell, fair value | 7,740 | 148,285 |
Investment securities held to maturity | 999 | 0 |
Investment securities held to maturity, fair value | 1,018 | 0 |
Investment securities available for sale | 0 | 999 |
Investment securities available for sale, at fair value | 0 | 999 |
Equity securities with readily determinable fair value, Carrying Amount | 1,646 | 1,568 |
Equity Securities with Readily Determined Fair Value | 1,646 | 1,568 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Investment securities held to maturity | 2,204,084 | 2,740,511 |
Investment securities held to maturity, fair value | 2,275,447 | 2,710,271 |
Investment securities available for sale | 3,262,586 | 3,945,943 |
Investment securities available for sale, at fair value | 3,262,586 | 3,945,943 |
FHLB and Federal Reserve Bank stocks | 227,347 | 250,534 |
FHLB and Federal Reserve Bank stocks, fair value | 227,347 | 250,534 |
Residential Loans Receivable Held for sale Net Not Part of Disposal Group | 136,280 | 64,321 |
Mortgages Held-for-sale, Fair Value Disclosure | 136,280 | 64,321 |
Commercial loans held for sale | 15,000 | 14,943 |
Commercial Loans Held-for-sale, Fair Value Disclosure | 15,000 | 14,943 |
Bank and Corporate Owned Life Insurance | 671,948 | 663,203 |
Bank owned life insurance, fair value | 671,948 | 663,203 |
Financial liabilities | ||
Brokered CDs and other time deposits | 2,622,803 | 2,815,401 |
Brokered CDs and other time deposits, fair value | 2,622,803 | 2,815,401 |
Short-term funding | 465,113 | 157,074 |
Short-term funding, fair value | 465,113 | 157,074 |
Other long-term funding | 549,343 | 795,611 |
Long-term funding, fair value | 588,774 | 826,612 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 3,180,967 | 3,574,371 |
Advances, Fair Value Disclosure | 3,207,793 | 3,565,572 |
Standby letters of credit | 2,710 | 2,482 |
Standby letters of credit, fair value | 2,710 | 2,482 |
Fair Value, Inputs, Level 2 | Asset | ||
Financial assets | ||
Derivative Assets | 101,778 | 89,052 |
Derivatives (trading and other assets), fair value | 101,778 | 89,052 |
Fair Value, Inputs, Level 2 | Liability | ||
Financial liabilities | ||
Net Amounts Presented on the Consolidated Balance Sheets | 36,745 | 87,817 |
Derivatives (trading and other liabilities), fair value | 36,745 | 87,817 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Equity Securities without Readily Determinable Fair Value, Amount | 13,444 | 0 |
Equity securities | 13,444 | 0 |
Loans, net | 22,620,068 | 22,702,406 |
Loans, net, fair value | 22,399,621 | 22,317,395 |
Derivative Assets | 2,527 | 2,208 |
Derivatives (trading and other assets), fair value | 2,527 | 2,208 |
Financial liabilities | ||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | 21,156,261 | 22,081,992 |
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts, fair value | 21,156,261 | 22,081,992 |
Net Amounts Presented on the Consolidated Balance Sheets | 710 | 2,072 |
Derivatives (trading and other liabilities), fair value | $ 710 | $ 2,072 |
Fair Value Measurements, Textua
Fair Value Measurements, Textuals (Details) - shares | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Closing Ratio | 86.00% | ||
Visa Restricted Shares Owned | 77,000 | 77,000 | |
Visa Class A Shares Current Conversion from Class B | 124,956 | 124,956 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Associated Banc-Corp | ||
Regulatory Capital [Abstract] | ||
Total capital | $ 3,208,625 | $ 3,216,575 |
Total Capital Actual Ratio | 13.21% | 13.49% |
Total Capital for Capital Adequacy Purposes Amount | $ 1,943,711 | $ 1,907,403 |
Total Capital for Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 Capital Actual Amount | $ 2,736,776 | $ 2,705,939 |
Tier 1 Capital Actual Ratio | 11.26% | 11.35% |
Tier 1 Capital for Adequacy Purposes Amount | $ 1,457,783 | $ 1,430,553 |
Tier 1 Capital for Adequacy Purposes Ratio | 6.00% | 6.00% |
Common Equity Tier One Capital | $ 2,480,698 | $ 2,449,721 |
Common Equity Tier One Capital to Risk Weighted Assets | 10.21% | 10.27% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 1,093,337 | $ 1,072,914 |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Tier 1 Leverage Capital Actual Amount | $ 2,736,776 | $ 2,705,939 |
Tier 1 Leverage Capital Actual Ratio | 8.83% | 8.49% |
Tier 1 Leverage Capital for Adequacy Purposes Amount | $ 1,239,431 | $ 1,275,048 |
Tier 1 Leverage Capital for Adequacy Purposes Ratio | 4.00% | 4.00% |
Associated Bank, N.A. | ||
Regulatory Capital [Abstract] | ||
Total capital | $ 2,892,650 | $ 2,909,064 |
Total Capital Actual Ratio | 11.95% | 12.25% |
Total Capital for Capital Adequacy Purposes Amount | $ 1,936,732 | $ 1,900,536 |
Total Capital for Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital to be Well Capitalized Amount | $ 2,420,915 | $ 2,375,671 |
Total Capital to be Well Capitalized Ratio | 10.00% | 10.00% |
Tier 1 Capital Actual Amount | $ 2,669,372 | $ 2,646,705 |
Tier 1 Capital Actual Ratio | 11.03% | 11.14% |
Tier 1 Capital for Adequacy Purposes Amount | $ 1,452,549 | $ 1,425,402 |
Tier 1 Capital for Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 Capital To Be Well Capitalized Amount | $ 1,936,732 | $ 1,900,536 |
Tier 1 Capital To Be Well Capitalized Ratio | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 2,469,578 | $ 2,446,782 |
Common Equity Tier One Capital to Risk Weighted Assets | 10.20% | 10.30% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 1,089,412 | $ 1,069,052 |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Tier 1 Equity Capital to be Well Capitalized Amount | $ 1,573,595 | $ 1,544,186 |
Tier 1 Equity Capital to be Well Capitalized Ratio | 6.50% | 6.50% |
Tier 1 Leverage Capital Actual Amount | $ 2,669,372 | $ 2,646,705 |
Tier 1 Leverage Capital Actual Ratio | 8.63% | 8.32% |
Tier 1 Leverage Capital for Adequacy Purposes Amount | $ 1,236,565 | $ 1,272,804 |
Tier 1 Leverage Capital for Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Leverage Capital To Be Well Capitalized Amount | $ 1,545,706 | $ 1,591,006 |
Tier 1 Leverage Capital To Be Well Capitalized Ratio | 5.00% | 5.00% |
Regulatory Matters (Details Tex
Regulatory Matters (Details Textuals) $ in Millions | Dec. 31, 2019USD ($) |
Banking and Thrift [Abstract] | |
Required minimum cash and reserve balances | $ 189 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Calculations for basic and diluted earnings per common share | |||
Net income | $ 326,790 | $ 333,562 | $ 229,264 |
Preferred stock dividends | (15,202) | (10,784) | (9,347) |
Net income available to common equity | 311,587 | 322,779 | 219,917 |
Common shareholder dividends | (111,091) | (104,981) | (75,967) |
Unvested share-based payment awards | (713) | (537) | (450) |
Undistributed earnings | 199,784 | 217,260 | 143,500 |
Undistributed earnings allocated to common shareholders | 198,424 | 216,199 | 142,593 |
Undistributed earnings allocated to unvested share-based payment awards | 1,360 | 1,060 | 907 |
Undistributed earnings | 199,784 | 217,260 | 143,500 |
Basic | |||
Distributed earnings to common shareholders | 111,091 | 104,981 | 75,967 |
Undistributed earnings allocated to common shareholders | 198,424 | 216,199 | 142,593 |
Total common shareholders earnings, basic | 309,514 | 321,181 | 218,560 |
Diluted | |||
Distributed earnings to common shareholders | 111,091 | 104,981 | 75,967 |
Undistributed earnings allocated to common shareholders | 198,424 | 216,199 | 142,593 |
Total common shareholders earnings, diluted | $ 309,514 | $ 321,181 | $ 218,560 |
Weighted average common shares outstanding | 160,534 | 167,345 | 150,877 |
Effect of dilutive common stock awards | 1,398 | 1,985 | 2,038 |
Effect of dilutive common stock warrants | 0 | 402 | 732 |
Diluted weighted average common shares outstanding | 161,932 | 169,732 | 153,647 |
Basic earnings per common share | $ 1.93 | $ 1.92 | $ 1.45 |
Diluted earnings per common share | $ 1.91 | $ 1.89 | $ 1.42 |
Earnings Per Common Share Narra
Earnings Per Common Share Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 2 | 1 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Income Statement Data Abstract | |||
Net interest income | $ 835,674 | $ 879,580 | $ 741,220 |
Net intersegment interest income (expense) | 0 | 0 | 0 |
Segment net interest income | 835,674 | 879,580 | 741,220 |
Noninterest income | 380,824 | 355,568 | 332,680 |
Total revenue | 1,216,498 | 1,235,148 | 1,073,900 |
Credit provision | 16,000 | 0 | 26,000 |
Noninterest expense | 793,988 | 821,799 | 709,133 |
Income (loss) before income taxes | 406,509 | 413,349 | 338,767 |
Income tax expense (benefit) | 79,720 | 79,786 | 109,503 |
Net income | 326,790 | 333,562 | 229,264 |
Segment Balance Sheet Data | |||
Allocated goodwill | 1,176,230 | 1,169,023 | 976,239 |
Operating Segments | Corporate and Commercial Specialty [Member] | |||
Segment Income Statement Data Abstract | |||
Net interest income | 450,532 | 457,613 | 360,789 |
Net intersegment interest income (expense) | (76,064) | (56,356) | (3,737) |
Segment net interest income | 374,467 | 401,258 | 357,051 |
Noninterest income | 53,282 | 52,321 | 52,297 |
Total revenue | 427,749 | 453,578 | 409,348 |
Credit provision | 52,382 | 44,592 | 42,298 |
Noninterest expense | 156,348 | 160,399 | 156,890 |
Income (loss) before income taxes | 219,019 | 248,587 | 210,160 |
Income tax expense (benefit) | 41,209 | 47,850 | 71,655 |
Net income | 177,809 | 200,737 | 138,505 |
Segment Balance Sheet Data | |||
Allocated goodwill | 525,836 | 524,525 | 428,000 |
Operating Segments | Community, Consumer and Business [Member] | |||
Segment Income Statement Data Abstract | |||
Net interest income | 332,850 | 357,245 | 316,008 |
Net intersegment interest income (expense) | 103,468 | 87,737 | 45,353 |
Segment net interest income | 436,318 | 444,982 | 361,361 |
Noninterest income | 307,750 | 295,647 | 266,250 |
Total revenue | 744,067 | 740,629 | 627,611 |
Credit provision | 20,043 | 20,083 | 20,400 |
Noninterest expense | 547,423 | 541,771 | 490,567 |
Income (loss) before income taxes | 176,601 | 178,775 | 116,645 |
Income tax expense (benefit) | 37,105 | 37,543 | 40,826 |
Net income | 139,496 | 141,232 | 75,819 |
Segment Balance Sheet Data | |||
Allocated goodwill | 650,394 | 644,498 | 548,238 |
Operating Segments | Risk Management and Shared Services [Member] | |||
Segment Income Statement Data Abstract | |||
Net interest income | 52,292 | 64,722 | 64,423 |
Net intersegment interest income (expense) | (27,403) | (31,382) | (41,615) |
Segment net interest income | 24,889 | 33,341 | 22,808 |
Noninterest income | 19,793 | 7,600 | 14,133 |
Total revenue | 44,682 | 40,941 | 36,941 |
Credit provision | (56,425) | (64,675) | (36,698) |
Noninterest expense | 90,217 | 119,629 | 61,677 |
Income (loss) before income taxes | 10,890 | (14,013) | 11,962 |
Income tax expense (benefit) | 1,405 | (5,606) | (2,978) |
Net income | 9,484 | (8,407) | 14,941 |
Segment Balance Sheet Data | |||
Allocated goodwill | 0 | 0 | $ 0 |
Business Combination, Acquisition Related Costs | 7,000 | $ 29,000 | |
Gain (Loss) on Disposition of Assets for Financial Service Operations | $ 2,000 |
Segment Reporting (Details Text
Segment Reporting (Details Textuals) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of Reportable Segments | 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | $ (124,972) | ||
Labor and Related Expense | (487,063) | $ (482,676) | $ (428,976) |
Reclassification from OCI due to change in accounting principle | 0 | (84) | 0 |
Interest income | 895 | (572) | (2,665) |
Total other comprehensive income (loss) | 91,789 | (62,214) | (8,079) |
Ending Balance | (33,183) | (124,972) | |
Investment Securities Available For Sale | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (75,643) | (38,453) | (20,079) |
Other comprehensive income (loss) before reclassifications | 111,592 | (39,891) | (27,040) |
Investment securities losses (gains), net | (5,957) | 1,985 | |
Labor and Related Expense | 0 | 0 | 0 |
Other Expenses | 0 | 0 | 0 |
Reclassification from OCI due to change in accounting principle | (84) | ||
Adjustment for adoption of ASU 2018-02 | (8,419) | ||
Interest income | 895 | (572) | (2,665) |
Other Comprehensive Income (Loss), Tax | (26,898) | 9,791 | 11,331 |
Total other comprehensive income (loss) | 79,631 | (37,189) | (18,374) |
Ending Balance | 3,989 | (75,643) | (38,453) |
Defined Benefit Pension and Postretirement Obligations | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (49,330) | (24,305) | (34,600) |
Other comprehensive income (loss) before reclassifications | 16,296 | (28,612) | 14,273 |
Investment securities losses (gains), net | 0 | 0 | |
Labor and Related Expense | (148) | (148) | (148) |
Other Expenses | 476 | 2,203 | 2,282 |
Reclassification from OCI due to change in accounting principle | 0 | ||
Adjustment for adoption of ASU 2018-02 | (5,235) | ||
Interest income | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Tax | (4,465) | 6,767 | (6,112) |
Total other comprehensive income (loss) | 12,158 | (25,025) | 10,295 |
Ending Balance | (37,172) | (49,330) | (24,305) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (124,972) | (62,758) | (54,679) |
Other comprehensive income (loss) before reclassifications | 127,887 | (68,503) | (12,767) |
Investment securities losses (gains), net | (5,957) | 1,985 | |
Labor and Related Expense | (148) | (148) | (148) |
Other Expenses | 476 | 2,203 | 2,282 |
Reclassification from OCI due to change in accounting principle | (84) | ||
Adjustment for adoption of ASU 2018-02 | (13,654) | ||
Interest income | 895 | (572) | (2,665) |
Other Comprehensive Income (Loss), Tax | (31,363) | 16,558 | 5,219 |
Total other comprehensive income (loss) | 91,789 | (62,214) | (8,079) |
Ending Balance | $ (33,183) | $ (124,972) | $ (62,758) |
Revenues Revenue Recognition by
Revenues Revenue Recognition by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | $ 288,247 | $ 290,084 | $ 262,175 | |
Noninterest Income, Outside of Scope of Topic 606 | 92,577 | 65,484 | 70,505 | |
Total noninterest income | 380,824 | 355,568 | 332,680 | |
Insurance commissions and fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 89,104 | 89,511 | 81,474 | |
Fiduciary and Trust [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | [1] | 83,467 | 82,562 | 70,126 |
Deposit Account [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 63,135 | 66,075 | 64,427 | |
Card-based fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 39,912 | 39,810 | 34,997 | |
Other fee-based revenue | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 12,629 | 12,126 | 11,151 | |
Corporate and Commercial Specialty [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 15,258 | 17,009 | 17,941 | |
Noninterest Income, Outside of Scope of Topic 606 | 38,024 | 35,311 | 34,355 | |
Corporate and Commercial Specialty [Member] | Deposit Account [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 12,883 | 14,981 | 16,006 | |
Corporate and Commercial Specialty [Member] | Card-based fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 1,373 | 1,334 | 1,125 | |
Corporate and Commercial Specialty [Member] | Other fee-based revenue | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 1,002 | 694 | 811 | |
Community, Consumer and Business [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 272,062 | 272,363 | 243,883 | |
Noninterest Income, Outside of Scope of Topic 606 | 35,687 | 23,284 | 22,367 | |
Community, Consumer and Business [Member] | Insurance commissions and fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 89,091 | 89,472 | 81,468 | |
Community, Consumer and Business [Member] | Fiduciary and Trust [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 83,467 | 82,341 | 70,126 | |
Community, Consumer and Business [Member] | Deposit Account [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 50,203 | 51,025 | 48,344 | |
Community, Consumer and Business [Member] | Card-based fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 38,349 | 38,439 | 33,849 | |
Community, Consumer and Business [Member] | Other fee-based revenue | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 10,952 | 11,087 | 10,095 | |
Risk Management and Shared Services [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 926 | 712 | 351 | |
Noninterest Income, Outside of Scope of Topic 606 | 18,866 | 6,889 | 13,783 | |
Risk Management and Shared Services [Member] | Insurance commissions and fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 13 | 39 | 6 | |
Risk Management and Shared Services [Member] | Fiduciary and Trust [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 0 | 222 | 0 | |
Risk Management and Shared Services [Member] | Deposit Account [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 49 | 69 | 77 | |
Risk Management and Shared Services [Member] | Card-based fees | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 190 | 37 | 23 | |
Risk Management and Shared Services [Member] | Other fee-based revenue | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 675 | 345 | 245 | |
Operating Segments [Member] | Corporate and Commercial Specialty [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total noninterest income | 53,282 | 52,321 | 52,297 | |
Operating Segments [Member] | Community, Consumer and Business [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total noninterest income | 307,750 | 295,647 | 266,250 | |
Operating Segments [Member] | Risk Management and Shared Services [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total noninterest income | $ 19,793 | $ 7,600 | $ 14,133 | |
[1] | (a) Includes trust, asset management, brokerage, and annuity fees. |
Recent Developments (Details)
Recent Developments (Details) - $ / shares | Feb. 04, 2020 | Sep. 19, 2018 | Sep. 15, 2016 | Jun. 15, 2015 |
Series C Preferred Stock | ||||
Recent Developments [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 6.125% | |||
Series D Preferred Stock | ||||
Recent Developments [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 5.375% | |||
Series E Preferred Stock | ||||
Recent Developments [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 5.875% | |||
Subsequent Event [Member] | ||||
Recent Developments [Line Items] | ||||
Dividends Payable, Date Declared | Feb. 4, 2020 | |||
Subsequent Event [Member] | Common Stock [Member] | ||||
Recent Developments [Line Items] | ||||
Dividends Payable, Date to be Paid | Mar. 16, 2020 | |||
Dividends Payable, Date of Record | Mar. 2, 2020 | |||
Subsequent Event [Member] | Common Stock [Member] | Dividend Declared [Member] | ||||
Recent Developments [Line Items] | ||||
Common stock, dividends declared ($ per share) | $ 0.18 | |||
Subsequent Event [Member] | Series C Preferred Stock | ||||
Recent Developments [Line Items] | ||||
Dividends Payable, Date to be Paid | Mar. 16, 2020 | |||
Dividends Payable, Date of Record | Mar. 2, 2020 | |||
Subsequent Event [Member] | Series C Preferred Stock | Dividend Declared [Member] | ||||
Recent Developments [Line Items] | ||||
Preferred stock, dividends declared ($ per share) | $ 0.3828125 | |||
Subsequent Event [Member] | Series D Preferred Stock | ||||
Recent Developments [Line Items] | ||||
Dividends Payable, Date to be Paid | Mar. 16, 2020 | |||
Dividends Payable, Date of Record | Mar. 2, 2020 | |||
Subsequent Event [Member] | Series D Preferred Stock | Dividend Declared [Member] | ||||
Recent Developments [Line Items] | ||||
Preferred stock, dividends declared ($ per share) | $ 0.3359375 | |||
Subsequent Event [Member] | Series E Preferred Stock | ||||
Recent Developments [Line Items] | ||||
Dividends Payable, Date to be Paid | Mar. 16, 2020 | |||
Dividends Payable, Date of Record | Mar. 2, 2020 | |||
Subsequent Event [Member] | Series E Preferred Stock | Dividend Declared [Member] | ||||
Recent Developments [Line Items] | ||||
Preferred stock, dividends declared ($ per share) | $ 0.3671875 |